Will your biotech stock be taken over?

Are we witnessing yet another run at the small biotech companies by Big Pharmas?  The big companies have stood by on the basis of IP on hand and this has seen some companies start to shed their profits and market share to more aggressive strategies in the industry.

Back in the day the large pharmas would have extensive labs and billions in projected research for the next big cancer, heart or other "in demand" type drug. As well as the high demand for cutting edge medical devices. The times have changed though and more start up biotechs have created new lead drugs that are quickly taken over by the big pharmas. This trend has proven to change the landscape of R&D into R&W, research & wait for others to prove what they have. Once the small bio-techs get in clinical trials they up the stakes in this game of hostile takeovers. The big fish stand back and let the small ones claw their way up stream to the finish line and just as it enters the home stretch they are eaten up.

If your in the market for a new drug you can save the lab costs and research and add that to your takeover bill and in the end still come out ahead. As well on the books it looks better with lower overhead for shareholders. As some devices reach the proven concept stage then they have opened the door to a takeover. No one wants to wait until there is a bidding war on this new "gold standard" product. No one even wants to hint they have an interest until they think they have the deal wrapped up. Once the regulatory bodies have signed off on issues like safety and the labs have signed off on quality and effectiveness then its game on. There are a lot of junior bio-techs that are near the line where they are fair game. Its a matter of weeding through all the ones who may fall along the way. R&D costs a lot of money and there are a lots of bumps in the road. I have lost track of how many just faded away into the night and a de-list notice just appeared on the boards. Choose wisely if this is an approach you want to take to investing in this expanding market. Keep in mind many buy-outs have happened based on "proof on concept" and not on actual sales figures.