Merger & Acquisition Activity in the Biotech Sector Potentially on the Rise after Pfizer’s $5.2 Billion Purchase

NEW YORK, NY / ACCESSWIRE / June 30, 2016 / The Biotech Industry received a boost last month after Pfizer Inc. announced its acquisition of Anacor Pharmaceuticals Inc. and its eczema gel, crisaborole, for $5.2 billion. Under the terms of the deal, Pfizer agreed to pay $99.25 per share in cash for Anacor, which represented a 55 percent premium to Anacor’s closing price of $64.03 on May 13th. The transaction has already received approval from both the company’s board of directors and is expected to be completed in the third quarter of 2016. The acquisition could potentially kick start merger and acquisition activity within the biotech industry as larger pharmaceutical and biotech companies will also look to boost revenues through acquisitions. Register with us now for your free membership and gain access to our biotech reports at: www.rdinvesting.com. Today we feature reports on ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD), Exelixis, Inc. (NASDAQ: EXEL), Medivation Inc. (NASDAQ: MDVN) and Novavax, Inc. (NASDAQ: NVAX).

“A lot of assets have gotten very cheap. This could kick-start mergers and acquisitions,” says Mindy Perry, a health-care sector portfolio manager for Manulife Asset Management.

“Large pharma and biotech companies need to start showing revenue growth, and the only way to do that is to buy a company that has a drug or will soon,” says Brad Loncar, of Loncar Investments.

ACADIA
Pharmaceuticals Inc. (NASDAQ: ACAD)

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Pharmaceuticals Research Report at www.rdinvesting.com/company/ACAD

ACADIA Pharmaceuticals’ shares gained 2.27 percent to close at $32.38 a share on Wednesday. The stock traded between $31.61 and $32.72 on volume of 1.87 million shares traded. The stock appears to be facing some resistance at $34.00 and $39.88 with some support at $32.24 and $29.14. ACADIA is focused on the development and commercialization of innovative medicines to address unmet medical needs associated with central nervous system disorders. On April 29th, the U.S. Food and Drug Administration (FDA) approved ACADIA’s NUPLAZID (pimavanserin) for treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. Acadia hopes to begin selling NUPLAZID in the United States by June 2016. Shares of ACADIA Pharmaceuticals have fallen approximately 9.2 percent year-to-date and are down roughly 9.1 percent in the past month.

Exelixis, Inc. (NASDAQ: EXEL)

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Exelixis’ shares increased 0.26 percent to close at $7.80 a share Wednesday. The stock traded between $7.63 and $7.90 on volume of 6.25 million shares traded. The stock appears to be facing some resistance at $8.28 with some support at $7.60 and $6.75. Exelixis’ share price gained 11.2% earlier this month after the company reported positive trial results for its advanced kidney cancer treatment CABOMETYX. “Patients whose kidney cancer has spread to their bones traditionally have a poorer prognosis and worse treatment outcomes compared with those who do not have bone involvement,” Bernard Escudier, M.D., chair, Genitourinary Oncology Committee, Institut Gustave Roussy, said in a statement. “CABOMETYX demonstrated a clinically meaningful benefit for those with bone metastases, which is encouraging for physicians and patients who are seeking additional therapeutic options.” Shares of Exelixis have gained approximately 38.3 percent year-to-date and are up roughly 23.0 percent in the past month.

Medivation Inc. (NASDAQ: MDVN)

Get Your Up-To-Date Medivation Research Report at www.rdinvesting.com/company/MDVN

Medivation’s shares jumped 5.47 percent to close at $60.95 a share Wednesday. The stock traded between $59.20 and $60.99 on volume of 3.70 million shares traded. The stock appears to be facing some resistance at $61.52 and $71.63 with some support at $58.59 and $54.50. Medivation has been in the headlines in recent months as Sanofi has made multiple bids to acquire the company. Medivation’s lead drug Medivation’s lead product candidate Xtandi was approved by the FDA in 2012 as a treatment for metastatic prostate cancer. Sales of Xtandi totaled $547.6 million globally in the first quarter of 2016, an increase of 53 percent year-over-year. Shares of Medivation have gained approximately 26.1 percent year-to-date and are up roughly 0.5 percent in the past month.

Novavax, Inc. (NASDAQ: NVAX)

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Novavax’s shares increased 2.87 percent to close at $7.17 a share Wednesday. The stock traded between $6.90 and $7.25 on volume of 6.77 million shares traded. The stock appears to be facing some resistance at $7.39 with some support at $7.13 and $6.70. On May 25th, the FDA granted Fast Track Designation to Novavax’ RSV F-Protein nanoparticle vaccine candidate (RSV F Vaccine) for the protection of older adults (60 years of age and older). “The FDA’s granting of Fast Track designation for our RSV F Vaccine in older adults underscores its recognition of RSV as a significant unmet medical need in this large population segment,” said Stanley C. Erck, President and CEO. “This joins our prior Fast Track designation for the RSV F Vaccine for the protection of infants via maternal immunization. Fast Track designation could allow for an expedited timeline to licensure, accelerating the access to this vaccine for the most vulnerable populations.” Shares of Novavax have fallen approximately 14.5 percent year-to-date, but have rallied roughly 22.3 percent in the past month.

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