JPMorgan analyst Cory Kasimov believes Biogen (BIIB) could potentially fetch a price in the neighborhood of $400 per share in the event of a takeover. The analyst weighs in after the Wall Street Journal reported yesterday that Allergan (AGN) and Merck (MRK) have expressed interest in acquiring Biogen.
Subsequent reporting, however, indicate that Allergan is unlikely to pursue a deal. Kasimov finds the reports unsurprising since he views Biogen as attractively valued with "intriguing pipeline optionality." Given the company's current CEO transition period, this could be an ideal time for a transaction, the analyst tells investors in a research note.
He believes a contingent value right on Biogen's Alzheimer's franchise as the key question for any potential deal. Biogen closed yesterday up 9%, or $28.28, to $330.11 following the Journal's report.
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