A while back, he speculated that Vertex Pharmaceuticals would be a good target, but nothing came of it. Now, he says it should take out Incyte (INCY +0.9%), citing its attractive pipeline and potential synergies with Gilead's existing roster of products. He adds that, assuming a reasonable acquisition premium, a deal would dilute earnings through next year but would be accretive thereafter. He claims that long-term earnings synergies could be 20% or higher.
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