Seeking Alpha

There have been several healthcare spinoffs recently that have enjoyed much fanfare and success. These are the Abbott Labs (ABT) and Abbvie (ABBV), Elan (ELN) and Prothena (PRTA) and the Covidien (COV) and Mallinkrodt (MNK), to be specific. But the latest spinoff announced, Theravance Biopharma, is smaller than the other healthcare spins and has remained largely unnoticed by the investment community. Historically, after a spin, the parent and spun company have higher probabilities of being bought out relative to the rest of the market. This happened with ELN, whereas the ABBV/ABT and PFE/ZTS spins were of such a size that no other company would bother a takeover of...

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