2 Biotech Stocks Worth Buying Before Their Potential Buyouts
Key takeaways
- ABBV OGN APGE Dealmaking is back with a vengeance in the pharmaceutical sector this year.
- Many deals focus on biotech stocks that use gene editing and other unique technologies.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
ABBV OGN APGE Dealmaking is back with a vengeance in the pharmaceutical sector this year. According to a report by Pw C, there were more than $65 billion in pharma and life sciences mergers & acquisitions in the first quarter, the best quarter for the sector since 2020. The report said the quarter had 16 M&A deals of at least $1 billion each.
In the second quarter, the pace hasn't slowed, with Sun Pharmaceuticals announcing in April that it would acquire Organon for $11.75 billion and Abb Vie reporting in June that it would acquire Apogee Therapeutics for $10.9 billion. Many deals focus on biotech stocks that use gene editing and other unique technologies. When a larger pharmaceutical company acquires a biotech stock, it is often at a premium to the biotech's stock price, rewarding its investors.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »