public interest Biotech purchase more fashionable than fashion

  Investors are on a wave of big capital Biotech after $ 10000000000 offer from Amgen Inc. Onyx Pharmaceuticals, Inc. betting can also be disappointed.

Shares of companies such as BioMarin Pharmaceutical Inc., Seattle Genetics, Inc., Ariad Pharmaceuticals Inc. Regeneron Pharmaceuticals Inc. Vertex Pharmaceuticals Inc. and Clovis Oncology Inc. have all rallied rejected the offer from Amgen in the news last month that Onyx had.

Experts in the field agree that the offer that was rejected as insufficient Onyx confirmed a healthy interest in the small mid-cap biotech, but said he increase the likelihood of more jobs in the sector is not very hot.

One of the main reasons is that the ratings have become very rich, with the Nasdaq Biotech Index by more than 43 percent in the last 12 months. Among the companies concerned, agreements for the development of existing drugs have been completed with leading pharmaceutical companies, making it more complex and potentially expensive acquisitions.

"People are much more disciplined and say, yes, I wish I had bought it for $ 2000000000 a few years ago, but I will not regret this turn now," said an M & A lawyer knows the industry.

The sector-wide rally, while it is more difficult for large companies to establish a profitable business, has also eased the pressure on small businesses who are not interested, is acquired.

Amgen to buy back interest Onyx followed by news last week that Roche Holding AG, Switzerland has requested funds to mount a bid for Alexion Pharmaceuticals Inc, sending shares of small companies up to 10 percent. With Alexion now sits at nearly $ 22000000000 estimated were the chances for a deal in the short term more complicated.

"I do not think that this will lead to a buying frenzy of biotechnology," said Morningstar analyst Karen Andersen. It found that those who eventually acquire Onyx could also be used as a logical buyer of a company BioMarin, the expensive drugs to develop rare genetic diseases.

The move underscores the attractiveness of Amgen Oncology as onyx, the drug sells for cancer of the liver, kidney and colon cancer in partnership with BayerBSE 4.10% AG Germany. The crown jewel of the company is considered Kyprolis, a medicine against blood cancer completely from Onyx has been approved by regulators in the past year belongs.

Alexion sells a single drug, but it is an expensive treatment for a rare disease, the German bank is estimated to reach peak annual sales of $ 4600000000 in 2018.

"I do not necessarily think that every business concerns," said Clay Siegall, CEO of Seattle Genetics, who see their shares rise by 20 per cent since mid-June. "There will be no (transactions) with the time, but I do not think it changes the environment."

He said that the focus on Seattle Genetics increases its use of lymphoma drug Adcetris. "At the moment we are an ambitious company ... we have a big way in the future," said Siegall., "I think that our major shareholders are favorable. I have no pressure on me to try to run and do a bit of a lot. "