Is Clovis Oncology Really a Buyout Candidate?

If enough people think something, does that make it true?

That's the question investors should ask themselves when it comes to Clovis Oncology (NASDAQ: CLVS), which saw its stock skyrocket 371% in November. The reason: The return of merger and acquisition (M&A) activity in the pharma industry has renewed hope that the company might be an attractive buyout candidate.

Clovis Oncology has a potentially important oncology drug on the market in Rubraca, which could earn supplementary approvals to greatly expand its use. The business recently started to curb operating expenses, which may tempt a potential suitor to take action -- or so goes the thinking of wishful investors. Do the rumors swirling around this pharma stock have merit?

Source Fool.com