Now that Actavis has hit the mark with its acquisition of Forest Labs, analysts have turned their attention to others in the generic space to see how they might respond. That means Mylan, Teva and Valeant come under more scrutiny -- and are subject to rumor.
Valeant in particular has a stated goal to grow from its current, roughly $49 B value, to a top 5 spot at $150 B or more in the next few years. It is known that Valeant has had Actavis in its sights in the recent past. Now, it might just wait for the Actavis-Forest deal to complete and then go after Actavis in its new bigger and better form? That's one scenorio. See Bloomberg.
Other analysts have a different scenario in mind. They say that Teva would make a much better target for Valeant's affection. Teva, at $39 B itself, would effectively double Valeant's size if it were to be acquired. Teva's biggest investor, Soros Fund Management, recently upped its holdings in the firm by 5.7 M shares at a cost $373 M. Teva hasn't been a particularly good performer in the past several years -- is Soros looking for a payout from a purchase of the company versus organic growth? That's a possibility isn't it? See Fierce Pharma.
Posted by Bruce Lehr Feb 19th 2014.