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
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.
Regards,
Ted
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.
Regards,
Ted
Lose Some: ABBV 3,034,900 - 4.89% At Open
Win Some: PCYC 2.113,100 + 10.44% At Open
Regards,
Ted