Currently, MRK (VX-680 collaboration) and Roche (must be interested in VX-950) are the most likely to ACQUIRE VRTX.
MRK has just stated that it wants to ACQUIRE mid-size BIOTECH companies that can enrich its pipeline. VRTX, which has had some COLLABORATION with MRK (mainly VX-680 -- aurora kinase inhibitors against cancer), FITS THAT DESCRIPTION.
Keep in mind that Joshua Boger, the CEO of VRTX, was a RESEARCH manager at MRK before he founded VRTX. And he still has STRONG CONNECTIONS at MRK.
In addition, since MRK is obviously looking for a BIOTECH company with a very STRONG PIPELINE, there are very few companies that fit that description. And VRTX clearly does.
The following is from an interview of MRK's CEO, Richard Clark, by NBR on 12/15/05. Read it CAREFULLY:
"GHARIB [interviewer]: You targeted today nine disease areas that Merck is going to be focused on. Are you considering to make any acquisitions that will help you advance your execution in reaching these goals?
CLARK: Yes. I think an important part of our strategy is that in all nine diseased areas, if there is a targeted acquisition that can help us from a science standpoint or it can help us from a revenue standpoint in those areas, we will certainly take a look at it.
GHARIB: How large might these acquisitions be?
CLARK: We`re certainly not talking about large mergers or acquisitions of that magnitude, but we`re talking about BIOTECH companies, mid-sized companies the may be able to help us in a research standpoint as well on a science and marketing standpoint." (See link below)
AS FOR THE ACQUISITION PRICE, I doubt anyone can ACQUIRE VRTX for less than $40/share given the IMPRESSIVE DATA of VX-950 (HepC), VX-702 (cardiovascular, RA), and VX-680 (cancer).
It will all be history soon.
Thats what I'm afraid of... NVAX pulling that shelf offering killed me yesterday. All was going great then it hit! It also happened to me with RNAI...Three is the magic number so I hope it dosen't hit me again!
When a stock trends, you follow it until it doesn't anymore. Even in trending stocks, declines occur, and they have with this one. It fell almost $1.40 over a short time from late last week to early this week. And, no one knows when any news would come out, so you judge charts day by day, ready to adjust when they do.
I had no strong indication, more like a hope that 28 would break. There was resistance there, and once removed, I believe it has allowed it to move higher. Most of the time, I don't go into a day with an expectation of a move unless something jumps out at me, especially strongly. It is important to not only know what you know, but know what you don't know. AMLN and VRTX are 2 of the stronger biotech charts out there, also.
That area of resistance was quite strong...I thought it might wait for news to break, as that trendline was hit 7 times, and each time the advance was halted. When you remove strong resistance, it isn't unusual for it to accelerate. It is now above that resistance trendline.