Biotech in general have more cash than other sectors. So, the M&A scope is huge, HUGE. In the first three quarters of 2015, deals worth $367.6 billion were announced in the pharma, medical and biotech space.
This was after a record year in 2014. The top five U.S. biotech companies by market cap had almost $117 billion in cash on their balance sheet at the end of the third quarter of 2015. With valuations now attractive, many of these companies would be tempted to make strategic acquisitions. The biotech sector gives you an opportunity like no other sector.
I can tell you when to buy into a stock that is going to be acquired. For example, a few days before the Allergan-Pfizer deal was announced, I had said thatAllergan would be a takeover target. The deal was announced 4-5 days later.