While the healthcare industry has historically been ripe for mergers and acquisitions activity, a recent report by Morgan Stanley analysts published in October and cited by Business Insider suggests health companies' high valuations and the wealth of readily available funding for biotechs are limiting the activity within the sector.
The report, obtained by Becker's Hospital Review, identifies 10 healthcare companies Morgan Stanley analysts predict will receive tender offers within the next 12 months. Analysts used proprietary quantitative models to issue its predictions. The models relied on a combination of cohort information and stock-level fundamental data to forecast acquisition likelihood, among other data.
Here are 10 companies likely to be acquired by the end of next year along with their market cap estimate, according to Business Insider:
1. Iqiva — $26.4 billion
2. Biomarin Pharmaceutical — $17.6 billion
3. Seattle Genetics — $12.9 billion
4. DaVita — $12.4 billion
5. Universal Health Services (King of Prussia, Pa.) — $11.7 billion
6. Dexcom — $11.5 billion
7. Neurocrine Biosciences — $10.8 billion
8. Perrigo — $9.8 billion
9. Nektar Therapeutics — $9.5 billion
10. Sarepta Therapeutics — $9.5 billion
To access the full report, click here.