(Reuters) - Drugmaker Bristol-Myers Squibb Co (BMY.N: Quote, Profile, Research, Stock Buzz) could be an acquisition target as the industry gets closer to losing exclusivity on several leading drugs, said a Sanford C. Bernstein analyst, who upgraded the stock to "outperform" from "market-perform."
"BMY could ultimately be a take-out candidate, based on our belief that there may be at least some merger and acquisition activity in the pharmaceutical sector as the patent "cliff" of 2011/2012 draws closer," analyst Tim Anderson said.
Makers of branded drugs face a looming patent "cliff" between now and 2012 as many of the world's most lucrative prescription medicines lose protection.
Revenue from these drugs are set to evaporate during this period as cheaper generic forms of the product become available.
COMMENT
Patent could play an important role in M&A decisions, especially in industries which involve a great deal of R&Ds. We shall pay attention to the acquisition and expiration of patent since they will affect the stock prices and management strategies.
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