Watchout on GERN
A lot of the smaller biotechs are being bid up today thanks to PFE’s lack of short-term pipeline, and heavy cash position.
PFE will mostlikely make a significant aqcuisition soon, but I do not think it will be a small biotech, especially not GERN. The most likely buyer of GERN is Merk. They already have deals in the works, and have an equity stake in the company. Also GERN’s pipeline is very very early stage. GERN does PFE no good.
My bets are on a mid-sized Biotechs, or a very late stage Bio w/a promising treatment and a management in desprate need of help. (Cough cough… DNDN… Cough cough)
DNDN may not need PFE for the short-term Domestic production and distribution of Provenge, but they will need PFE for international production and distribution. They could also use PFE to re-activate their pipeline activities, instead of letting their pipeline lay dormant and waste away! But then again, I doubt management is smart enough to sell themselves off, even for the right price.
PFE needs revenue past 2009, not a very promising small biotech many years away from an FDA decision.
