Idenix Pharmaceuticals (IDIX)
With a market cap of only $1.1 billion, Idenix Pharmaceuticals (IDIX) is more than affordable enough for most any major biopharma company. But it’s not its affordability that makes IDIX stock an interesting acquisition candidate. Idenix is smack dab in the middle of the biotech industry’s newest hot button — hepatitis (B as well as C).
Though its hepatitis C drug, IDX-184, suffered a setback last year in the form of a delay of human trials, and IDIX stock tanked when Johnson & Johnson (JNJ) opted to acquire a Hep-C drug from rival drugmaker GlaxoSmithKline (GSK), Idenix Pharmaceuticals’ pipeline is still one of the more promising ones out there among established biotech stocks.
What’s even more encouraging to current and prospective owners of IDIX stock is that the company is already collaborating with the aforementioned GlaxoSmithKline as well as Novartis (NVS). Given the current involvement, it would take little motivation to prod either of those current partners into outright ownership of Idenix, just to simplify their current collaborations and collect all the future revenue of those partnerships.
And, we already learned a few days ago that Novartis is in a buying mood. Other biotech stocks may well be in its sights, as it looks to expand its portfolio.