Biogen Inc (NASDAQ:BIIB) just made a huge move out of thin air Tuesday evening, spiking 9.5% to $330 as of this writing. Until the surge, BIIB stock was trading in the red in the sub-$300 range.
So why the sudden interest in this biotech? Well, those pesky “people familiar with the matter” are at it again, this time running their gums on a possible BIIB buyout at the hands of Big Pharma, specifically Merck & Co., Inc (NYSE:MRK) and Allergan (NYSE:AGN).
Both companies, the anonymous but familiarized people claimed, are interested in taking over the now-$75-billion company, but Biogen may not be interested, states The Wall Street Journal.
Just days ago, Biogen CEO George Scangos announced that he will leave the company after six years. His resignation comes on the heels of slow sales of Biogen’s flagship product, Tecfidera. After his announcement, the market began speculating that BIIB could be an acquisition target, and it seems any bit of whispers on the matter are enough to send the stock into the stratosphere.
Talking to CNBC, Scangos said:
“Obviously I can’t comment on that. That wouldn’t make any logical sense to me that because I’m leaving, the company is in play. We all believe, the board believes, I believe, the future is bright for Biogen.”
Allergan, for its part, noted to Business Insider that it “does not comment on market rumor or speculation.”
What’s important to take away here is the need for growth in Big Pharma. A Biogen acquisition would be the biggest in the sector since 2008, but that doesn’t mean Big Pharma companies like MRK or AGN couldn’t just as soon snatch up another biotech stock to spur some much-needed growth.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
