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Drug Deal

Rumors about JNJ's megapurchaase of Guidant continued this week. The
pharmagiant is considering to buy the stent-producing rival at $75-80
a share. The deal makes too much sense--JNJ bears the financial
muscle; Guidant--whose market cap is about 23 billion--leads the race
in stent technonlogy. Consolidation within the industry is
already tight--for many, the buyout could signal the return of a
pharmaceutical has been--JNJ shares have taken a hit over the last
year due to a drying pipeline and competition from generics. Rivals Medtronic
and St Jude Medical are surely watching one of the worst kept secrets on the
Street

posted by Catablast! Media Group @ 6:26 PM