New takeover targets with hot biotech IPOs

New York

AFTER being overshadowed last year by the boom in big pharmaceutical mergers, biotechnology deals are kicking off 2015. The first large drug transaction of the year was Shire Plc's agreement on Sunday to buy rare-disease treatment developer NPS Pharmaceuticals Inc for US$5.2 billion. Biogen Idec Inc also struck a deal of up to US$675 million for a company with an experimental pain medicine. More takeovers of young companies with promising new remedies may follow as drugmakers look for ways to stoke growth.

Last year's record amount of biotech initial public offerings is giving acquirers an even bigger pool of candidates to choose from, with innovative therapies in profitable treatment areas such as liver disease and cancer. It adds to a list of potential targets that were already on analysts' radar, including Achillion Pharmaceuticals Inc and Tetraphase Pharmaceuticals Inc.