Factbox - Bristol-Myers' $74 billion Celgene buy has investors looking for next deal

Bristol-Myers Squibb Co`s announcement that it would buy Celgene Corp for $74 billion has raised investors` hopes that a wave of consolidation among drugmakers could be coming. The following are some of the companies in the sector whose shares rose on Thursday on takeover speculation following the deal announcement:INCYTE CORP , ENDED TRADING UP 7 PERCENT

The failure of an Incyte immunotherapy drug in combination with Merck & Co`s Keytruda in a melanoma trial last year sent its shares reeling. But analysts have said its bone marrow disorder treatment, Jakafi, has become a meaningful new revenue opportunity for the company. At a $15 billion market capitalisation, Incyte remains a digestible size for larger players such as Gilead Sciences Inc and Sanofi SA . RBC analyst Brian Abrahams said in a research note on Thursday that Incyte is an acquisition target because it is undervalued and has an oncology and inflammation pipeline. GILEAD SCIENCES INC , ENDED TRADING UP 3 PERCENT

Gilead has a hefty $85 billion market capitalisation, making it only a target for the largest global drugmakers. Its product portfolio targets HIV/AIDS, hepatitis C, cancer, inflammatory and respiratory diseases, and cardiovascular conditions. The company recently named a new CEO, Daniel O`Day, who previously headed Roche Holdings AG`s pharmaceutical business. O`Day is expected to help Gilead build out its global presence, especially in liver disease beyond hepatitis C, oncology and inflammation. ALEXION PHARMACEUTICALS INC , ENDED TRADING UP 2 PERCENT

Rare disease specialist Alexion, which has faced pressure from activist hedge fund Elliott Management could be an acquisition target for companies such as Amgen Inc or Pfizer Inc
, analysts have said. Extremely expensive drugs for ultra rare diseases have become increasingly attractive to larger drugmakers. NASH COMPANIES

Raymond James analysts said in a research note that M&A could happen this year involving companies focussed on the huge unmet need for treating the progressive fatty liver disease known as NASH (non-alcoholic steatohepatitis), which does not yet have any approved treatments. Even though their shares did not get a boost on Thursday, Madrigal Pharmaceuticals and Intercept Pharmaceuticals are among the leaders developing treatments to tap a market that could eventually be worth $30 billion. As they race towards regulatory approval for NASH, these companies could become targets for larger biotechs. Allergan, for example, bought Tobira in 2016 for its experimental NASH drug for $1.8 billion, 19 times what the stock market was valuing the company. RBC`s investor survey showed Intercept, which was a market value of $2.8 billion, was a favored takeout candidate by investors for this year. Several other small companies are also developing promising NASH drugs.

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