Is Another Wave of Biotech M&A On The Way?

There is an old joke among sell-side research analysts that if you are going to make predictions, you should make a lot of them to increase your odds that you will make at least a few correct guesses. With that in mind, I am predicting that we are going to start seeing a wave of acquisitions in the biotech space as larger companies need to recharge their pipelines and better leverage their infrastructure and smaller companies find it increasingly onerous to launch drugs on their own. 

Sanofi Goes for the Esoteric 
Sanofi-aventis (NYSE:SNY) announced a relatively small deal on Wednesday, telling investors that the company is buying privately-held TargeGen for $75 million in cash. Should TargeGen's compounds hit certain milestones (in other words, if the drugs work), the payout could increase to up to $560 million.

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