1 Cancer Stock on Buyout Watch in 2022

The pharmaceutical industry appears poised for a record-breaking level of merger and acquisition (M&A) activity in 2022. Four emerging trends back up this assertion.

First, Pfizer (NYSE: PFE) and Moderna are both flush with cash thanks to their novel coronavirus vaccines. Second, Novartis recently banked $21 billion after selling its two decade long position in Roche. Third, Amgen, AstraZeneca, Biogen, Bristol Myers Squibb, Gilead Sciences, Johnson & Johnson, Merck, Moderna, Pfizer, and Sanofi are all expected to pursue bolt-on acquisitions next year to flesh out their clinical pipelines and product portfolios. Fourth, Novo Nordisk and Roche can both be counted on for at least one small to mid-sized acquisition per year.

Which segment of the pharmaceutical space will see the most business development activity in 2022? If history is any guide, promising early stage cancer companies will continue to be a particularly hot area for M&A next year. Cardiff Oncology (NASDAQ: CRDF), for instance, is a small-cap cancer company that comes across as uber-attractive takeover target. Here's a look at upside potential and downside risk associated with this promising biotech stock.

Source Fool.com