These 6 biotech stocks are promising takeover targets

Now that we’re a good part of the way through biotech earnings season with no overt hints of buyout deals in conference calls, many investors are giving up hope that merger madness will strike their favorite names. This is a mistake.

With sector weakness since early April shaving 8%-10% off the iShares NASDAQ Biotechnology ETF IBB, -0.81% and the SPDR S&P Biotech ETF XBI, -1.83% for example, potential takeover targets in fact are now more attractive.

Meanwhile, the underlying forces creating demand for buyout targets remain. Large pharma and biotech companies need to build out their product pipelines, and many have the buying power to make acquisitions.

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