Critics were quick to point out that the big pharma giant overpaid for the smaller oncology firm, whose sales will only add $.05 to its earnings per share in the first year. Supporters of the deal, on the other hand, point to lead treatment Xtandi’s potential for expansion into additional indications and the potential of its pipeline.
The key takeaway for investors, in my opinion, is that the upside potential in key pipeline assets or approved drugs could potentially be much more than originally projected by Wall Street analysts.
The Next Takeover Candidate?
Another biotech that is potentially in the crosshairs of big pharma is GW Pharmaceuticals (NASDAQ:http://seekingalpha.com/article/4007045-zynerba-pharmaceuticals-revaluation-imminent