Pfizer announced $14 billion deal for cancer drug developer Medivation. The offer price of $81.50 per share in cash, is a 21 percent premium to Medivation share closing price of Friday, and is significantly higher than the $52.50 per share offered earlier this year by French competitor Sanofi.
Nasdaq Biotechnology Index ETF (IBB) gained more than 2 percent Monday morning, for its best performance in almost a month. Biotech stocks have been languishing for last few months for a variety of reasons. After Medivation, which was trading up about 20 percent, it was led by Regeneron, Incyte, Celgene and BioMarin — themselves all potentially targets of takeover speculation, whether or not they are actually targets for takeovers. Celgene is also, and more frequently, cited as a potential buyer. Reference: CNBC article