In all, Wall street supports biotech acquisitions

摘要

Some say that "value is in the eye of the beholder," Biotechnology stocks are ceitainly proof of this, as their value fluctuates dramatically in the eyes of Wall Street, corporate partners, or acquiring companies. This has resulted in high premiums over the market value paid by the latter two groups, such as the 150% premium paid by Boehringer Ingelheim (Ingelheim am Rhein, Germany) for an 8% equity participation in Isis Pharmaceuticals (Carlsbad, CA) and a 76% premium paid by Amgen (Thousand Oaks, CA) for acquiring Synergen (Boulder, CO). With a 50% decline in public and private financing for biotechnology companies so far in 1995, the role of pharmaceutical companies and larger biotechnology companies in financing the biotech industry is substantially increasing, and this is reflected in a record number and dollar value of corporate partnerships and acquisitions in 1995 Some smaller biotechnology companies are also playing the acquisition game in owlet to acquire additional technology, late-stage products, or cash;