“There are some midtier biotech firms with terrific pipelines,” said Steven Roge, a portfolio manager with R.W. Roge & Co. Inc., which has $200 million under management.
For example, he estimates Genzym’s fair-value price to be about $55, or about $5 above its current share price.
“A larger company might pay $70 or $80 [per share] to acquire Genzym,” he said. “Most of the pharmaceutical companies aren’t that sophisticated when it comes to acquisitions. They’re looking at the pipeline potential and they’ll throw the valuations to the side.”