Pfizer Inc. (NYSE:PFE) And Other Pharmas Could Target Hyperion Therapeutics Inc (NASDAQ:HPTX) With Orphan Drugs

While Pfizer Inc. (NYSE:PFE) has maintained the eventful activities in the M&As arena of drug-making companies, it is speculated that the next target for the entire industry might be Hyperion Therapeutics Inc (NASDAQ:HPTX). This year has already been demanding in terms of major mergers and acquisitions in the drug companies.

Are analyst calling PFE a long-term hold?

Drug-makers find a new target for deal: Hyperion

Hyperion is the company worth $890 million. What makes it lucrative is its rank among the top providers of urea cycle disorders treatments. Any drug company selling the treatment of the rare diseases becomes highly attractive for the deals. Takeover speculations of this company have already shown great signs in the market.

A company making perfect sense for acquisition

In an interview with Bloomberg, a Brean Capital LLC analyst, Difei Yang opines that the company can act as a perfect dart to the bull’s eye if someone wishes to acquire it because the orphan drugs are often chased by a plethora of acquirers. Hyperion, in this case, is at the #1 position.

Adding to the drug-industry big start

This year has witnessed the biggest starts in this industry. Any other deal will only make the biotechnology and pharmaceutical industry wider and bigger. Some of the major acquisitions this year included Pfizer’s acquisition accord of Hospira, Inc. (NYSE:HSP) in a deal worth approximately $17 billion. Lately, AbbVie Inc (NYSE:ABBV) also acquired Pharmacyclics, Inc. (NASDAQ:PCYC) for $21 billion.

Hyperion’s Worth Likely to Increase

The acquirers who are looking for the drugs on rare diseases will like to include in their portfolio, the treatments for urea cycle disorder. But, a company with a broader portfolio including the gastrointestinal drugs would seek for the hepatic encephalopathy niche. Hyperion’s market value will increase further in future if it reinforces its footsteps in both these markets. Difei Yang says that a buyer should acquire this company at the earliest, if strategic perspective is kept in mind.

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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