Could This Stock Be the Next Biotech Buyout?
Shares of Reata Pharmaceuticals (NASDAQ: RETA) recently jumped about 54% higher in a single trading session. This biotech stock was already way up this year thanks to the recent approval of its first drug, Skyclaris, in February.
A juicy buyout offer with a steep premium is what sent Reata Pharmaceuticals' stock price through the roof last week. (NASDAQ: BIIB) agreed to buy the drugmaker for $7.3 billion in cash. The offered price represents a 59% premium to the biotech stock's closing price the previous day.
Every time a big drugmaker buys a little one for a steep premium, investors start wondering about which stock might be next to leap higher. Let's have a look at what attracted Biogen to Reata in the first place to make an educated guess about which biotech stock could receive the next big buyout offer.
Source Fool.com