Monday, May 15, 2006

Hit #96

AstraZeneca announced a deal to buy its partner, Cambridge Antibody Technology (CATG), for $1.33 billion, a pleasing 67% premium to the last closing price. The cash offer, which amounts to around $24.98/share is a 84% premium over my average cost of $13.6/share. I had bought all my shares just 2 weeks ago, as CATG started looking like a bargain with all that cash pile and its strong partnerships.

CATG became an increasingly likely target after Abgenix was acquired by Amgen a while ago (Hit #70).

Another British biotech, which also happens to be headquartered in Cambridge, that appears like a bargain now is Acambis (ACAM). I have been adding to my position for a while now, though the stock seems to do nothing but going down on a regular basis! I could do with a whopper premium on Acambis!

With this takeover, PDL Biopharma (PDLI) remains as the only viable target left. I own a few shares, and would be a buyer at current prices. Medarex (MEDX) has been mentioned as a target too, but I would like to see stronger signals before buying.

Previous hit - Advanced Digital (#95)


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