One of the few things we know about 2019, and what was known at the start of January, is that 2019 could be the year when consolidation in the pharma sector really kicks in.
This is because the large players are being squeezed by regulation, and generic competition, and will have to look to the smaller, niche players in order to maintain their position.
This means that the likes of Intercept Pharma could be in focus for consolidation by the likes of Novartis or Astrazeneca, and given the rocky ride for the stock since the summer it would be likely that few would be able to argue this is not a good idea.
With the stock back at major support in the $85 zone, this could be a range play anyway, even without any M&A materialising.
Zakmir.com is a purely journalistic website and not for profit – unlike the mainstream media. Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.