SVB Leerink analyst Geoffrey Porges says Alexion Pharmaceuticals is likely "on the radar" as a takeover target, but Amgen does not fit logically as a buyer, contrary to a recent media report that said Amgen could be nearing a deal to acquire Alexion for $200 a share, reported Investor's Business Daily.
According to Porges, Amgen seems to be fully committed to oncology, neurology and immunology, whereas Alexion specializes in rare diseases. However, the analyst noted that Alexion also has no competitive, regulatory, operational or manufacturing challenges in sight.
Porges said that in the last 18 months, such considerations have driven large biotechnology takeovers, including Takeda's acquisition of Shire, as well as pending buyouts of Celgene and Allergan by Bristol-Myers Squibb and AbbVie, respectively.
Alexion, which markets Soliris and Ultomiris for rare diseases of the blood, "is a highly attractive, fungible, accretive asset that is likely to be materially more valuable in the hands of a diversified company than it is alone," Porges said.
"We believe there is a desperate scarcity of such assets across the industry, and for this reason, investors should anticipate a hefty premium, if a genuine acquirer materializes," he remarked, but "we don't think that Amgen is the most logical such acquirer."
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