These 4 Neurology-Focused SMID Biotechs Could Be in Biogen's (BIIB) Radar

The drumbeat for Biogen (NASDAQ: BIIB) to make an acquisition continues to grow louder and, with the recent Brexit-related slide in sector valuations, shareholders are hoping the company pounces sooner rather than later.

With Biogen shares trading near lows it hasn't seen since six months post the Tecfidera launch in 2013, Baird analyst Brian Skorney just last week proclaimed "it's time for Biogen to buy or be bought." Skorney notes Biogen continues to look for late-stage neurology assets, but wouldn't be surprised if the company picked up some high-risk gambles along the way.

Today, Credit Suisse turned the heat up a notch, listing Biogen as a 5 on a scale of 1-5 as a pharma company ready for a deal. Credit Suisse also notes Neurology as the company's area of M&A focus.

The Credit Suisse team, led by Vamil Divan, highlighted comments made by Biogen CEO George Scango on the Q 2016 Earnings Call:

"Since we think of revenue on a multi-year basis, we also will continue our focus on pursuing opportunities outside of Biogen. We continue to track companies and compounds that are potentially interesting for us, and we are in constant discussions with multiple parties from the types of tuck-in acquisitions that we've done historically to later-stage assets closer to commercialization. And, as we said in previous calls, we want to be active in this area while remaining financially disciplined."

Three Neurology-focused companies popped-up on Credit Suisse's list of attractive SMID biotech takeover targets: Adamas Pharma (NASDAQ: ADMS), Alder BioPharma (NASDAQ: ALDR) and Prothena Corp. (NASDAQ: PRTA). These could all be in Biogen's wheelhouse.

Also, while not mentioned by Credit Suisse, Acadia (NASDAQ: ACAD) is also seen as a strong fit for Biogen.

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