Three biotech merger targets to buy now

Professional investor Ailsa Craig picks three biotech stocks that are ripe for takeover.

Each week, a professional investor tells MoneyWeek where she'd put her money now. This week:Ailsa Craig, investment manager, International Biotechnology Trust

Health care has led the revival in merger and acquisition (M&A) activity in recent years 2014 was a record-breaker, while 2015 has got off to an equally strong start. The total value of healthcare deals in the first six months was $344bn up 48% on the same period last year, reports Dealogic. Larger companies' hunger for new drugs is a key driver. Smaller companies are more successful at innovation, making them ideal targets. But what exactly do buyers look for in a potential biotech target?

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Ailsa Craig has been the lead portfolio manager of International Biotechnology Trust (IBT) since 2021.

Ailsa has managed IBT since 2006. She began her career at Insight Investment / Rothschild Asset Management before joining Baring Asset Management as a research analyst. She holds a BSc (Hons) in Biology from the University of Manchester, the IMC and the Securities Institute Diploma.