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2010: Year Of The Deal?

A flurry of M&A has turned the spotlight on Pharma and more. What names should be on your radar?

SPOTLIGHT: PFIZER

Two big headlines out for Pfizer on Wednesday- but one result: a lower stock.

1) Pfizer and partner Medivation said Wednesday that the experimental drug, Dimebon, failed to meet goals, such as improved thinking ability in patients with mild to moderate Alzheimer's disease, explains CNBC’s Mike Huckman.

Still, the results don't necessarily spell the end for Dimebon. Pfizer is continuing three studies that could prove Dimebon helps patients in combination with other Alzheimer's drugs or when used for a longer period.

2) Meanwhile, Pfizer is reportedly gearing up this week to bid 3 million euro ($4.08 billion) for Ratiopharm, a generic drug maker based in Germany, according to Bloomberg News, which cited two unidentified people with knowledge of the talks.

What’s the trade?

Pfizer is all about Lipitor, says Mike Huckman, it’s the best selling drug in history and it goes generic next year. Pfizer needs something to fill that gaping hole.

That suggests it will need to make other acquisitions, he adds. I’d suggest putting Vertex, Dendreon, and Human Genome on the radar.

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THE NEXT TAKEOUT

Considering the flurry of M&A chatter, who’s next?

Potential Takeover Target Sector

Bristow Group Energy
Hormel Foods Cons. Staples
Green Mountain Coffee Cons. Staples
Watson Pharmaceuticals Health care
Autozone Cons. Discretionary
Source: Brian Belski, Oppenheimer

If you're looking for a takeover target, I'd keep OSI on the radar, counsels Jon Najarian. I think we could see multiple offers.

I love the gold market for takeovers, counsels Brian Kelly, especially the junior miners.

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SECTOR TRADE: COMMERCIAL GROWTH

You've been hearing it for months: commercial real estate is the next shoe to drop. But you wouldn't know it by the M&A frenzy taking hold of the sector this week.

What’s the trade?

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TECH: NO DEAL

We’re seeing deal making in pharma, and deal making in commercial real estate. Yet in one of the most cash-rich sectors -- tech -- no deals!

What’s wrong with the picture?

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