Why Amgen, Lilly, J&J Are Interested In Exelixis

Exelixis (EXEL) and Theravance Biopharma (TBPH) tick off most of the acquisition boxes for Big Pharma.

Late development-stage and commercial-stage biotech companies such as Exelixis are particularly attractive acquisition targets.  This is in part due to reduced risk.  This according to Alan Carr, a Needham analyst.

Theravance has one approved drug, an antibiotic for hard-to-treat infections.  Beyond that, Exelixis may be attracting the interest of 18 pharmaceuticals.

However, some biotechs may stand a better chance of being acquired vs. others.  Since January 2014, there have been 37 acquisitions of public biotech companies involving a payment of more than $250 million upfront.

Oncology was a key target for U.S. and Japanese pharmas.  In addition, while rare-disease plays are likely to be acquired at later stages.

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