MRK - Clovis: Evaluating The Prospects Of A Possible Acquisition

It does mean that a company with research centered around each of these divisions, like a cluster of trees each growing additional branches from its own trunk, will usually do much better than a company working on a number of unrelated new products which, if successful, will land it in several new industries unrelated to its existing customers. - Philip Fisher

It's usually an exciting time for shareholders when a biotech company is bought out. That's because an acquirer typically pays a premium (i.e. at least 50% higher than the share price). As you recall,