Until Jan. 7, most investors had never heard of a small biopharmaceutical firm based out of Stamford, Ct.
But they certainly paid attention to Loxo Oncology Inc. (Nasdaq:LOXO) and its medicines for patients with genetically defined cancers after its stock jumped more than 66% that day.
Of course, within minutes, the average retail investor was locked out of the action.
That’s because shares of this once-obscure biotech leader leapt on news of an $8 billion buyout from Eli Lily & Co. (NYSE:LLY). See, the biopharma giant is shelling out the money to gain access to Loxo’s cutting-edge cancer treatment.
As important as the news is for life sciences investors, in all candor I probably wouldn’t be bringing it to your attention if this was just a one-off.
That’s because this was the third major biotech takeover in just a few weeks’ time.
And when I say major… the total price tag for all three deals… was a cool $83 billion.
Talk about a sector on fire with mergers and acquisitions.
Which leads me to the theme at hand…
Finding a good way to profit from of all of this M&A activity in the life sciences sector… without getting blindsided by these eye-popping deals, like we saw with the Loxo Oncology takeover.
So today, I’m going to let you in on how to profit from takeovers in the space, with an investment that has already rallied nearly 21% from its recent low…