Geoff Porges predicts the next companies to be involved in M&A activity will be in biotech. He zeroes in on names like Alexion (ALXN), Dendreon (DNDN), United Therapeutics (UTHR) and Seattle Generic (SGEN) as potential takeover targets.

Buy - Price 66.54 on May 26
by Maxim Group

With the approval of Adcirca [as a first-line treatment of pulmonary-arterial hypertension, or PAH], UTHR would have two (possibly three, pending late-July Tyvaso approval) PAH drugs....With an increasingly strong position in the PAH treatment marketplace, UTHR should have greater leverage to expand revenue. As such, we believe the stock still has significant room to rise based on our expected rapid top- and bottom-line growth over the next few years and recommend UTHR to moderate-risk-tolerant investors as an important stock in health care. Target: 96. Market cap: $1.7 billion.

Anyone scanning the biotech ranks for potential acquisition targets shouldn't overlook United Therapeutics (UTHR). It has one characteristic that lots of other small biotechs would envy: It's in the black. One of its most promising products is Remodulin, which is used to treat hypertension in the blood vessels of the lungs. Although there are other PAH drugs, Turner Investment Partners' Sustersic says that United Therapeutics is "one of the clear leaders, and they potentially could have a big blockbuster."

Hold-- Price 88 on Feb. 19
by Brean Murray Carret

[Despite] concerns regarding results of oral treprostinil pivotal trials and launch of Viveta [for pulmonary arterial hypertension], we belie[ve] treprostinil is the best-in-class therapy for PAH and expect continued growth for the Remodulin franchise in "08, despite flat quarter/over/quarter. We now forecast 1Q08-4Q08 and year-end 2008 EPS to be: 49 cents, 39 cents, 48 cents, 33 cents, and $1.69, respectively. Market-cap: $1.8 billion.

new drugs coming with great study results

Bio Tech Play and good Fundamentals

Upgraded by Leerink Swann from Mkt Perform to Outperform

Upgraded by CE Unterberg from Market Perform to Buy

Biotech

nmr

discounting in progress