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Watch Biotech Today

scott
edited March 2015 in Off-Topic
Discussed yesterday that Johnson and Johnson was going to buy Pharmacyclics (PCYC), which is already up 88% YTD. CNBC was acting as if J & J buying it was a sure thing and happening fairly imminently. Abbvie (ABBV) late last night with the outbid, paying $21B (ABBV's market cap is $96B) in a cash/stock combination.

Would not surprise me to see biotech ramp higher due to the size of the deal and the unexpected nature of Abbvie's purchase, but Abbvie is lower pre-market (market thinking it overpaid.)

http://finance.yahoo.com/news/abbvie-makes-cancer-therapy-push-054116894.html

Comments

  • JohnChisum
    If there are any other biotech companies in the spotlight for acquisition, I would think a short term bounce for their stocks is possible.

    I think AbbVie will quickly erase any drop as the deal gets recognized as a good one. Looks like J&J fell asleep at the switch.
  • TedTed
    @ Scott & John One of my largest holdings PRHSX holds 2,113,100 shares of PCYC. Thanks for the info .
    Regards,
    Ted
  • scott
    edited March 2015
    JohnChisum said:

    If there are any other biotech companies in the spotlight for acquisition, I would think a short term bounce for their stocks is possible.

    I think AbbVie will quickly erase any drop as the deal gets recognized as a good one. Looks like J&J fell asleep at the switch.

    If you like ABBV, now down a couple bucks (about 3.75%) pre-market and yields fairly close to 3.5%, down about $12 off its 52 wk high. Given that it was spun-off from Abbott, generally will likely lean towards the conservative side.

    On a related note, I still like Abbott long-term from the standpoint of nutrition and significant exposure to EM.

    Related note two: Also own PRHSX and wasn't aware it owned PCYC - thanks Ted for the note.
  • JohnChisum
    It looks like I do own it already via ACDJX. 6683 shares according to M*'s latest data. It also holds major positions in Gilead, Amgen, J&J,Celgene and Biogen Idec.
  • DavidMMP
    All good things have to come to a end! PCYC, thank you.
  • BenWPBenWP
    PCYC is a real winner for the Medical Technology Stock Letter (bioinvest.com). The McCamants have had the company in their recommended portfolio since the early days. The newsletter subscription is pricey, but lurkers can easily identify the stocks they follow. To get analysis and updates, you gotta pay. Not saying which three of their companies I currently own.
  • TedTed
    @ MFO Members: PRHSX Portfolio Update: Win Some Lose Some
    Regards,
    Ted
    Lose Some: ABBV 3,034,900 - 4.89% At Open
    Win Some: PCYC 2.113,100 + 10.44% At Open
  • DavidMMP
    MTSL is good one and worth the money if you Like to invest in Biotech and don't have the time and "compentency" in this area.
  • sligo
    Have PCYC as one of the picks in my Primecap Aggressive Growth Fund (POAGX) which has been a very rewarding long term holding.
  • DavidMMP
    Primecap usually have larger allocation to emerging pharmaceutical/biotech, I am a happy investor with Primecap since 98.
  • TedTed
    @sligo: POAGX is a great fund, but you want to own a pure healthcare and biotech fund.
    Regards,
    Ted
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