Talk about large pharmaceutical companies buying small biotechnology firms is all the rage. The idea behind this talk is large companies have almost no pipeline of drugs and a tiny growth rate. They need to buy smaller companies with good drug pipelines to increase shareholder value.
A great example of this would be the hostile bid for Illumina, Inc. (NASDAQ:ILMN) by Roche.
Small biotechnology firms have started to jump over the last two days. Today, stocks like Agenus Inc. (NASDAQ:AGEN), OXiGENE, Inc. (NASDAQ:OXGN), EntreMed, Inc. (NASDAQ:ENMD) are all charging higher.
While these have already made a move, charts of Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) and ADVENTRX Pharmaceuticals, Inc. (NYSEAMEX:ANX) both look attractive. ADVENTRX is trading at one-half cash value.
Gareth Soloway
InTheMoneyStocks.com
