Could Big Pharma buyout be close?
Today even the most immature biotechs often get bought out, rewarding investors with huge premiums. BioDisplay Labs sold to Abbot Labs for $7 milllion only three years after the company was founded – not bad for three years work by a University of Illinois professor and his grad students! I told you earlier about Angiosyn, a microcap biotech with two employees and one experimental drug that Pfizer bought for a half billion dollars. And in case you think Pfizer must have been on drugs when they made that deal, note that Angiosyn had several other companies in the bidding. Pfizer also bought Esperion, a biotech with no approved drugs, for $1.3 billion. PhytoMedical’s patented cancer breakthrough makes the company a very attractive buyout target. For PYTO to get bought out at this stage could give investors the potential to see a huge premium on value – companies at this stage of development are getting as much as 50% over retail. If you’re a patient investor, willing to hold on to your $
