Big Pharma Companies Drooling Over Idenix (IDIX) Following BMY/INHX Deal
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Price: $24.50 --0%
Rating Summary:
1 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 14 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of Idenix Pharma (Nasdaq: IDIX) are continuing higher Wednesday as traders are still speculating on the possibility the company could be the next target following last week's $2.5 billion deal between Bristol-Myers and Inhibitex (Nasdaq: INHX). Jumping more than 80 percent last week, the stock is up another 5.5 percent this afternoon.
Fueling the speculation fire Wednesday, Wedbush's Duane Nash issued a note earlier which uses the details of the Inhibitex bidding war to provide some context as to what an Idenix takeout might look like.
A recent SEC filing confirms a number of other bidders besides Bristol-Myers were involved in the process. Most importantly, Nash points out one other party was indeed willing to buy Inhibitex at the $26 price agreed upon with Bristol-Myers.
Nash then poses two enticing questions: "(1) will the losing bidder now turn to IDIX? and (2) how much would they be willing to pay?" A big pharma out there which "...still lacks a viable nucleotide ready for late-stage clinical trials... couple with the fact that there is a lack of options for big pharma to acquire nucleotide assets (IDIX possess the only remaining unpartnered clinical-stage nuc), leads us to anticipate that IDIX184 will be in high demand." Nash posits Merck (NYSE: MRK) as the most likely suitor, following by J&J (NYSE: JNJ), Abbott (NYSE: ABT) and then Roche.
Wedbush reiterated an Outperform rating and $15 fair value estimate on shares of Idenix.
Fueling the speculation fire Wednesday, Wedbush's Duane Nash issued a note earlier which uses the details of the Inhibitex bidding war to provide some context as to what an Idenix takeout might look like.
A recent SEC filing confirms a number of other bidders besides Bristol-Myers were involved in the process. Most importantly, Nash points out one other party was indeed willing to buy Inhibitex at the $26 price agreed upon with Bristol-Myers.
Nash then poses two enticing questions: "(1) will the losing bidder now turn to IDIX? and (2) how much would they be willing to pay?" A big pharma out there which "...still lacks a viable nucleotide ready for late-stage clinical trials... couple with the fact that there is a lack of options for big pharma to acquire nucleotide assets (IDIX possess the only remaining unpartnered clinical-stage nuc), leads us to anticipate that IDIX184 will be in high demand." Nash posits Merck (NYSE: MRK) as the most likely suitor, following by J&J (NYSE: JNJ), Abbott (NYSE: ABT) and then Roche.
Wedbush reiterated an Outperform rating and $15 fair value estimate on shares of Idenix.
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