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Biotech with excellent drugs on the market

Genetech (DNA) was downgraded from Buy to Hold, Citigroup said. $108 price target. Expect Roche to sweeten its bid, but investors should not chase the stock.

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Roche offer to purchase the company.

Have an inside tract

Thank you, New York Times. Remember just a couple of weeks ago, when The New York Times wrote about how Genentech's (DNA) Avastin was too expensive and the stock got cracked down to $77? I know Roche did. I bet that was the last draw. The dramatic decline in the dollar plus a sentiment that has spawned a thousand articles -- that life-saving drugs cost too much -- gave the Swiss giant a chance to bolster its own anemic pipeline by buying what may be the greatest wonder drug of all time in its $43 billion bid, no doubt the beginning price for what will ultimately be a deal close to $100 a share. (I pushed DNA hard here and on "Mad Money" because I have been a huge believer in Avastin and I'm confident that people will pay anything -- or family members will pay anything -- for the hope of three or four months or more of life, or the chance of beating cancer altogether.)

Cramer: Pick a Pharma Now: Jim Cramer says today's news means you have some shopping to do in the drug aisle.


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“If you read The New York Times on last Sunday and you owned Genentech (DNA), all you could think of is, "How much money am I going to lose Monday?"

The article, which I am sure had a thorough go-round in the short community, caused a blow that turned out to be the blow you buy -- the bounce off the canvas that made you bet with the underdog and win.

Because of the rotation. Because of Barack Obama. Because there's no price that people won't pay for cancer abatement. Because the FDA is on the side -- rare but true -- of the people who want Avastin.

I can't emphasize enough how important sea changes are. You have one here that is not only once blessed -- worldwide slowdown favors drug stocks, as I say every night on "Mad Money" this week -- but twice blessed: The Democrats hate Big Pharma but always favor drug company innovation, and DNA is the innovator, even though it can hardly be considered a small biotech company.

How powerful is this rotation? Two real disappointers, two companies that totally screwed up with bad acquisitions -- Hologic (HOLX) and Inverness Medical Innovations (IMA) -- are at last catching bids. Amgen (AMGN), which has been a total disaster, is making a move back up. That seems for real. Even the suddenly hated Merck (MRK) is rocking, and I think people are way too negative on that one, too.

In this rising tide, even the leakiest boats are lifting, and, funny thing, they will only go higher, because, at last, the struggling analysts who have hidden in this amazing bear market for everything drug finally have something to say, and if history is any judge, they will shout it daily from the rooftops.”

Dead company no innovation

Burned me once...

always loose w/ this one.

I didn't buy it when I should have-fifteen years ago.

GROWTH

Nobody seems to want Biotechs this year...no momentum

Nobody seems to want Biotechs this year...no momentum

Nobody seems to want Biotechs this year...no momentum

Even though fundamentals are good, there are no new products and it's stuck in the amgn, dndn sector.

biotech play