SGX Pharma (Nasdaq: SGXP) 6-Month Chart

Shares of SGX Pharma (SGXP) soared after hours Tuesday on news of an all-cash $64 million buyout from Eli Lilly (LLY). The buyout represented a premium of more than 100% at $3 per share for SGX, which is being acquired for its drug discovery platform focused on oncology. The two companies have collaborated since 2003, and the deal is expected to close during the second half of the year.

Recently, several buyouts at 100%-plus premiums for micro-cap biotechs such as cancer drug developer Kosan Biosciences (KOSN) by Bristol-Myers (BMY) and Barrier Therapeutics by privately-held Stiefel Labs have taken place as larger pharmaceutical companies look for deals to bolster their pipeline and product portfolio. Also, shares of many small and micro-cap biotechs are trading at multi-year or all-time lows as risk-averse investors have avoided the entire group in response to bear market …

Shares of Kosan Biosciences Inc. (NASDAQ: KOSN), a biotechnology company and drug developer that focuses on the genetic manipulation of polyketides, which are used in antibiotics and anticancer drugs, more than tripled recently on the announcement of the signing of a definitive merger agreement with Bristol-Myers Squibb. Under the terms of the agreement, Bristol-Myers Squibb will acquire Kosan for $5.50 per share in cash.

Bristol-Myers Squibb will begin purchasing all of the outstanding shares of Kosan with a net aggregate purchase price of approximately $190 million. This purchase agreement has been unanimously approved by the boards of directors of both companies. Fully committed to the development and commercialization of its pre-clinical portfolio, Kosan Biosciences believes that this acquisition represents a timely and unique opportunity to place the company’s clinical and pre-clinical programs and technology assets into the hands of a world-class oncology company.

Through this acquisition, Kosan Biosciences has granted to