Everyone Wins With This Biotech Buyout

This biotech buyout sent shares of both companies soaring. Should investors be jumping in?

Dave Williamson
Dave Williamson
Nov 12, 2013 at 7:45PM
Health Care

From the smallest biotech to the biggest pharmaceutical stock, The Motley Fool's Market Check-Up covers the health-care sector's biggest headlines, hottest market movers, and Obamacare's ongoing rollout.

In this segment, health-care analyst David Williamson takes a look at the upcoming acquisition by Salix Pharmaceuticals (UNKNOWN:SLXP.DL) of Santarus (UNKNOWN:SNTS.DL) for about $2.6 billion. Salix is currently a maker of drugs for gastrointestinal diseases, and the immediately accretive deal will give Salix access to treatments for both diabetes and heartburn. Shares of both companies were up significantly on the news. David tells investors why shareholders should be pleased with this deal on both ends and what he thinks of the stock going forward.

Follow David on Twitter @MotleyDavid.