Allergan May Join Sector Takeover Waves (AGN, GSK, DNA, PFE, WYE, MRK, SGP)

If the rumor mill has any truth to it, then Allergan Inc. (NYSE: GSK) may by the next biotech takeover target.  There is roughly $150 billion in new equity investor capital that can be put to work in this space now that Genentech Inc. (NYSE: DNA) is being bought by Roche and that Pfizer Inc. (NYS: PFE) is buying Wyeth (NYSE: WYE) and that Merck & Co. (NYSE: MRK) is buying Schering-Plough (NYSE: intra-day trading trends for day traders and options volume at Volume Spike Investor.  And then there is the deeper down assumed valuation assessments using forward P/E’s and other balance sheet data at Biohealth Investor.

Allergan has now just crossed over the 10 million share mark and shares are up 11.7% at $48.23.  In today’s world of the market whip-around and the world of M&A, we won’t be shocked if Allergan denies the rumors saying they would rather be an acquirer.  Nor would we be shocked if the company halts or just says “No Comment!” in response to this.

Jon C. Ogg
March 24, 2009