Small Biotechnology Stocks Roar, Profit Now
Talk about large pharmaceutical companies buying small biotechnology firms is all the rage. The idea behind this talk is large companies have almost no pipeline of drugs and a tiny growth rate. They need to buy smaller companies with good drug pipelines to increase shareholder value.
A great example of this would be the hostile bid for Illumina, Inc. (NASDAQ:ILMN) by Roche.
Small biotechnology firms have started to jump over the last two days. Today, stocks like Agenus Inc. (NASDAQ:AGEN), OXiGENE, Inc. (NASDAQ:OXGN), EntreMed, Inc. (NASDAQ:ENMD) are all charging higher.
While these have already made a move, charts of Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) and ADVENTRX Pharmaceuticals, Inc. (NYSEAMEX:ANX) both look attractive. ADVENTRX is trading at one-half cash value.