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The BTK buyout

April 5, 2011
Remember this BTK post we wrote back  in February of 2010?  Well, we thought it was time to revisit the makeup of the BTK index (NYSE Arca Biotechnology Index).  Five of  the 20 companies that comprised the index in February of last year have either been acquired or are facing acquisition.  That means 25% of the entire index has been snapped up in a little over a year (Table 1).

Millipore (MIL) and OSI Pharmaceuticals (OSIP) acquired in 2010 by Merck KGaA and Astellas, respectively, have already been removed from the index, making room for new additions Dendreon (DNDN) and Qiagen N.V. (QGEN).  If Valeant's $73/share all-cash offer for Cephalon (CEPH) goes through, the BTK could see three new companies added in 2011.

It is also worth noting that only five (four if Cephalon is acquired) of the original 15 biotech companies that comprised the BTK in 2000 remain today (Table 2).

Table 1

Table 2