Henry Gosebruch, managing director of health-care mergers and acquisitions at JPMorgan Chase & Co. (NYSE:JPM), recently said that some biotechnology companies reliant on a sole-product have noticed their stocks triple or quadruple in the past few years, to market capitalizations ranging from $2 billion to $5 billion, as those products have performed well.
He said that with their valuations gone too high, big pharmaceutical firms may seek alternative for acquisitions to fill revenue holes left by expired patents, such as larger firms trading at more digestible multiples and with more established products.[article_detail_ad_1]
Biotechnology companies with market caps of over $10 billion include Amgen, Inc. (NASDAQ:AMGN), Gilead Sciences, Inc. (NASDAQ:GILD), Celgene Corporation (NASDAQ:CELG), Biogen Idec Inc. (NASDAQ:BIIB), Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN)
On Friday, Corcept Therapeutics Incorporated (NASDAQ:CORT) was one of biggest gainers in the industry, scoring third-day rally after analysts at Janney Montgomery Scott started coverage on the stock with a buy rating.
Hemispherx BioPharma, Inc (NYSEAMEX:HEB) was also in the top movers list after an insider trading report.
Amicus Therapeutics, Inc. (NASDAQ:FOLD) extended three-day winning streak after the Wall Street Journal reported that its experimental drug for Pompe disease, duvoglustat HCI, performed higher than standard therapy alone in a mid-stage trial, providing an optimism to patients with the rare and fatal genetic disorder and helping to restore investor confidence in the biopharmaceutical company.
Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) surged 7.9% after Robert W. Baird initiated coverage on the stock with an “outperform” rating.
Zalicus Inc (NASDAQ:ZLCS) added 7.58% after it suspended trials of a potential arthritis drug, by declaring its new lead candidate has started the second of two Phase 2a trials against chronic neuropathic pain.
Neuralstem, Inc. (NYSEAMEX:CUR) increased 7.45% after the company announced that President and CEO Richard Garr will a present business overview at the fifth annual Biotech Showcase in San Francisco on Tuesday, January 8, 3:45 p.m. PT, in Room Powell.
On the flip side, Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) was under pressure after Oppenheimer said a US survey on the company’s Iclusig suggests some risk to launch.
InterMune, Inc. (NASDAQ:ITMN) was another loser on Friday after equity research analysts at Stifel Nicolaus reduced their target price to $19.00 on the stock.
Biogen Idec Inc. (BIIB) was down 1.3% as Piper Jaffray downgraded the stock from an overweight rating to a neutral rating after its ALS Drug failed Phase III Trial.
Alexion Pharmaceuticals, Inc. (ALXN) extended fall, retreating from a boost it saw after Janney Montgomery Scott assumed coverage with a neutral rating on the stock.
Despite trading near highs, Santarus, Inc. (NASDAQ:SNTS) edged down on Friday.