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When a firm announces that they are being taken over or acquired by another firm, the target’s stock often jumps in price to reflect the takeover premium paid by the acquirer. This is why analysts speculate about potential takeover/leveraged buyout targets.

We created a universe of rumored potential takeover/LBO targets from various sources including Minyanville and Seeking Alpha and screened for those from the biotech industry. From these rumored biotech takeover targets, we searched for those that have seen significant decreases in the put/call ratio, a bullish change in sentiment. To access the complete list of takeover targets, click here.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Do you think options traders are calling it right on these names? Use this list as a starting-off point for your own analysis.

List sorted by decrease in put/call ratio.

1. Chelsea Therapeutics International Ltd. (NASDAQ:CHTP): Biotechnology Industry. Market cap of $355.02M. Takeover/LBO rumor sourced from Seeking Alpha. Put/call has decreased 80.0% over the last ten trading days (from 0.90 to 0.18). The stock is a short squeeze candidate, with a short float at 9.26% (equivalent to 7.5 days of average volume). The stock has had a good month, gaining 13.89%.

2. Human Genome Sciences Inc. (HGSI):
Biotechnology Industry. Market cap of $4.38B. Takeover/LBO rumor sourced from Minyanville. Put/call has decreased 45.31% over the last ten trading days (from 0.64 to 0.35). The stock is a short squeeze candidate, with a short float at 9.11% (equivalent to 8.39 days of average volume). The stock is currently stuck in a downtrend, trading 5.21% below its SMA20, 9.77% below its SMA50, and 10.99% below its SMA200. The stock has lost 3.79% over the last year.

3. Amgen Inc. (NASDAQ:AMGN):
Biotechnology Industry. Market cap of $50.82B. Takeover/LBO rumor sourced from Seeking Alpha. Put/call has decreased 22.73% over the last ten trading days (from 0.88 to 0.68). The stock has gained 1.98% over the last year.

4. Acorda Therapeutics, Inc. (NASDAQ:ACOR): Biotechnology Industry. Market cap of $1.14B. Takeover/LBO rumor sourced from Seeking Alpha. Put/call has decreased 20.27% over the last ten trading days (from 0.74 to 0.59). The stock is a short squeeze candidate, with a short float at 12.66% (equivalent to 6.2 days of average volume). It's been a rough couple of days for the stock, losing 10.94% over the last week.

5. Celgene Corporation (NASDAQ:CELG): Biotechnology Industry. Market cap of $27.37B. Takeover/LBO rumor sourced from Minyanville. Put/call has decreased 18.64% over the last ten trading days (from 0.59 to 0.48). The stock has gained 12.43% over the last year.

6. Dendreon Corp. (NASDAQ:DNDN): Biotechnology Industry. Market cap of $5.57B. Takeover/LBO rumor sourced from Minyanville. Put/call has decreased 14.0% over the last ten trading days (from 0.50 to 0.43). The stock is a short squeeze candidate, with a short float at 10.97% (equivalent to 5.66 days of average volume). The stock has gained 21.76% over the last year.

7. InterMune Inc. (NASDAQ:ITMN): Biotechnology Industry. Market cap of $2.15B. Takeover/LBO rumor sourced from Minyanville. Put/call has decreased 12.96% over the last ten trading days (from 0.54 to 0.47). This is a risky stock that is significantly more volatile than the overall market (beta = 2.27). The stock has had a good month, gaining 10.25%.

8. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN): Biotechnology Industry. Market cap of $3.28B. Takeover/LBO rumor sourced from Minyanville. Put/call has decreased 6.67% over the last ten trading days (from 0.45 to 0.42). The stock is a short squeeze candidate, with a short float at 7.84% (equivalent to 10.59 days of average volume). Exhibiting strong upside momentum--currently trading 9.19% above its SMA20, 11.61% above its SMA50, and 16.28% above its SMA200. The stock has had a good month, gaining 15.28%.

9. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY):
Biotechnology Industry. Market cap of $418.59M. Takeover/LBO rumor sourced from Seeking Alpha. Put/call has decreased 5.71% over the last ten trading days (from 0.35 to 0.33). The stock is a short squeeze candidate, with a short float at 10.96% (equivalent to 17.31 days of average volume). The stock has lost 33.98% over the last year.

10. Exelixis, Inc. (NASDAQ:EXEL): Biotechnology Industry. Market cap of $1.09B. Takeover/LBO rumor sourced from Minyanville. Put/call has decreased 3.77% over the last ten trading days (from 0.53 to 0.51). The stock is a short squeeze candidate, with a short float at 10.09% (equivalent to 8.08 days of average volume). The stock has gained 168.87% over the last year.

*Options data sourced from Schaeffer’s, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.