Merck KGaA Crashes Into The Versum-Entegris Tie-Up

I liked both Versum (VSM) and Entegris (ENTG) in the fall of 2018, Entegris a little moreso, on the idea that the market was overreacting to the correction cycle in semiconductors and semiconductor equipment and that underlying chip production (a key driver for Versum) was unlikely to be impacted as much as seemed to be reflected in the prices. When Versum and Entegris announced their intent to merge in late January, I thought it made a lot of sense and would create a stronger new company, led by management team (Entegris) with a lot of experience in M&A integration.

Now Merck KGaA (OTCPK:MKKGY) has pushed itself into the conversation, making an unsolicited all-cash offer that is well above the upfront value offered by the Entegris deal. Although I can see why some shareholders may prefer a stock-for-stock bid and I believe there are some regulatory risks to the Merck KGaA offer, it’s hard to argue with an all-cash offer that is well above what Versum shareholders were otherwise expecting.

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Merck KGaA Crashes Into The Versum-Entegris Tie-Up

Danaher Adds A Jewel To Its Crown

It's not too often that you see an M&A transaction that sends the shares of both companies meaningfully higher, but Danaher's (DHR) acquisition of most of General Electric's (GE) Life Sciences business is a good move for both companies. For GE, the deal brings badly-needed cash that will help shore up the business as CEO Larry Culp tries to turn that hamstrung behemoth around. For Danaher, this is a crown jewel acquisition that meaningfully enhances the company's life sciences business (particularly in bioproduction/bioprocessing) and gives it even more exposure to a fast-growing acylical business with strong margins.

Although pricey, the GE Biopharma deal boosts Danaher's long-term growth rate and margins, and I believe management's synergy/accretion expectations are credible if not conservative. It's hard to say that Danaher is cheap, but considering the enhanced exposure to a very attractive market, I understand why the shares trade where they do.

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Danaher Adds A Jewel To Its Crown

The Motley Fool: Cancer Vaccines: Doomed to Fail?

Some ideas sound good in theory but just never manage to work out in real-world experience, and cancer vaccines are on their way to that destination. Following the failures of Vical and Merck KGaA with their respective cancer vaccines, GlaxoSmithKline (NYSE: GSK  ) has announced the second pivotal trial failure for its MAGE-A3 cancer vaccine. Glaxo will continue to try to identify patient sub-populations in both melanoma and lung cancer that could/do respond to a clinically significant degree, but the odds are good that this high-risk/high-reward program is on its last legs.

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Cancer Vaccines: Doomed to Fail?

Seeking Alpha: Can New Management Drive New Growth At Techne?

Techne (TECH) has always been a little different in the realm of publicly-traded life science companies. While the company's headquarters are pretty pleasant once you're inside, the surroundings are a pretty nondescript commercial/light industrial zone. Likewise, it's a little strange to sit down as an analyst with a management team that tells you they will not do road shows or conference calls, and doesn't much care whether they get any attention from Wall Street at all.

None of this is meant as a criticism against the company - management was always unfailingly polite and helpful to me in my analyst days, and the company's stock has generated excellent returns over the past 20 and 10 years. Where there is an issue, though, is in the more recent performance, where Techne has notably lagged other life sciences companies like Thermo Fisher (TMO), Sigma-Aldrich (SIAL) and more specialized/focused companies like Illumina (ILMN).

I'm optimistic about the potential for new management to put Techne on a more growth-oriented footing, not only with an expanded international focus but also perhaps a wider view of the company's addressable market opportunities. While I could see bull-case upside into the low $80s for Techne, that requires a level of transformation that is pretty aggressive. A more probable trajectory suggests Techne is close to fair value today, but still offers good near-real time exposure to life sciences spending.

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Can New Management Drive New Growth At Techne?

Seeking Alpha: Pall Has The Quality, But Valuation Is A Stretch

Filtration has been a popular niche within industrial and life science markets, and it's not hard to see why. Once a system is in place, the vendor can usually look forward to years of lucrative disposables/consumables sales and customers are disinclined to risk their reputations or systems (to say nothing of downtime) just to save a few bucks on a competing platform.

All of that speaks to why Pall (PLL) should be a popular stock. Certainly the company has a great array of businesses, with relatively dependable markets like biopharmaceuticals and healthcare offsetting more volatile and cyclical industries like microelectronics and aerospace. That all being said, there's a fair value for every asset and Pall is going to have to deliver remarkable performance to live up to its present valuation.

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Pall Has The Quality, But Valuation Is A Stretch

Investopedia: Biogen Idec Has Built A Valuable Franchise

Diversification is all well and good, but there's nothing wrong with a well-run company that does a few things very well. With an enviable franchise in multiple sclerosis, a promising pipeline and a host of pharmaceutical giants desperate for growth and operating leverage, Biogen Idec (Nasdaq:BIIB) could yet have a few surprises left for shareholders.

Steady Progress in Q3 
Third quarter results did not have a lot of financial surprises, but Biogen Idec continues to grow nicely. Total revenue rose 11%, with Tysabri, which the company sells in partnership with Elan (NYSE:ELN), growing 26% and key drug Avonex showing 6% sales growth. Although Avonex seems to be showing some wear with Novartis's (NYSE:NVS) drug Gilenya on the market, it still represents over half of the company's sales.

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http://stocks.investopedia.com/stock-analysis/2011/Biogen-Idec-Has-Built-A-Valuable-Franchise-BIIB-ELN-NVS-DGX-MKGAY.PK-TEVA-SNY-PFE1101.aspx