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What: Shares of biotechnology company Amylin Pharmaceuticals (NAS: AMLN) climbed 10% on Monday on a Reuters report that it is exploring the possibility of a sale.
So what: The news comes just weeks after Amylin rejected a $3.5 billion buyout offer from Bristol-Myers Squibb, reigniting excitement over just how much the company will be able to fetch. Amylin has likely been feeling the pressure to do something ever since the Bristol-Myers news leaked, making the sale to a drug giant like AstraZeneca or Merck a very real near-term possibility now.
Now what: Citing sources close to the matter, Reuters says that Amylin has hired Credit Suisse and Goldman Sachs as its financial advisors and retained Skadden Arps for legal advice. Of course, with the stock now up more than 125% over the past three months alone, gambling on a quick big-premium buyout isn't exactly prudent. Unless you're willing to own Amylin as a stand-alone business at the current valuation, staying on the sidelines seems like the best bet.
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