RE:If CRX can copy VRX....can TRX copy both CRX and VRXGrowth hunger in the sector will canabalize many of the strong players in the next few years. (And many of the weaker ones). As companies emulate Valeant (growth through serial acquisition), I'd expect TRX to go down 1 of 2 roads:
1. They grow fast enough to become the hunter.
2. Their growth flatlines long enough management acquiseses to the (many) suitors and gets taken out.
Either way, you're going to make some money as an investor. Although it's too early for me to feel happy about a takeout - I want 3 bucks a share before that discussion happens - what you want to see is the Condordia's of the world continue to soar in stock price. I cheer these guys on, even though I own no shares. Such growth begates more growth, and the only way that significant growth can continue is through serial acquisition. When this happens you're better off owning the small fish than the large, as the next meal for the big fish goes up in price. It doesn't even matter if the small fish is unprofitable, as the larger company will ignore that company's fundamentals because they think their own cost structure to market those drugs will bring the target company's drugs into profitiability.
If the energy sector's mantra is "drill baby drill" then the pharma sector's mantra is "buy baby buy".