Pharmacyclics Takeover Depends on Cancer Drug Potential -- Market Talk................celg Revlimid referenced....
Pharmacyclics Takeover Depends on Cancer Drug Potential -- Market Talk
10:22 AM ET 2/26/15 | Dow Jones
10:22 EST - Shares of Pharmacyclics (PCYC), up 77% year-to-date, could "decline substantially" if the biopharma company isn't acquired, Bernstein says. PCYC's potential takeover price was pegged at $17B-$18B by Bloomberg, which would value the company at more than 200 times its net income last year. To justify that valuation, PCYC's cancer drug Imbruvica would have to reach $5B in annual global sales in 2019, which is consistent with consensus forecasts, but very ambitious when compared with similar launch trajectories like Celgene's (CELG) Revlimid, Bernstein says. R.W. Baird is more bullish on a deal getting done, and says Johnson & Johnson (JNJ) is the "heavy favorite" to buy PCYC, but Norvartis is also "a decent candidate