$Roivant Sciences (ROIV.US)$ A biotech/pharma buyout/license...

$Roivant Sciences(ROIV.US)$ A biotech/pharma buyout/license deal is more likely to happen when the target company's stock is under pressure as a falling stock price can make the target company more attractive to buyers.
1) a falling stock price can make the target company more affordable for buyers, a major incentive for buyers, especially if they believe that the target company has valuable assets or technology.
2)a falling stock price can make the target company's shareholders more willing to sell their shares, making it easier for buyers to acquire the target company.
3) a falling stock price can make the target company's board of directors more receptive to a buyout offer as the board of directors may believe that a buyout is the best way to maximize shareholder value.
Other factors that can make a biotech/pharmaceutical buyout/license deal more likely:
The target company has a strong pipeline of products, is in a competitive industry and a rapidly growing market.