BioCentury
ARTICLE | Finance

Buy-ogen

Reading the tea leaves on a Biogen buyout

August 8, 2016 7:00 AM UTC

It's anybody's guess as to whether or how long Biogen Inc. (NASDAQ:BIIB) will remain independent, but judging by the stock's 20% surge in value in the past two weeks, it looks like the Street thinks a buyer is on the horizon. But betting on a takeout is not without its risks.

The M&A rumor mill started on July 21, when Biogen posted strong 2Q16 earnings and announced the planned departure of CEO George Scangos. That day, the stock climbed $20.04 to $282.45. The earnings helped, but some buysiders speculated the leadership change meant an acquirer could use the flux to make an offer (see BioCentury, July 25)...