After Spanish publication Intereconomia claimed once again that a deal between Amgen (AMGN) and Alexion Pharmaceuticals (ALXN) could be near, Piper Jaffray analyst Christopher Raymond said he questions the validity of this report, but feels such a move "could make a ton of sense."

AMGEN ACQUISITION REPORTS: On Wednesday, Intereconomia reported Amgen should announce in the next few days that the company is acquiring Alexion. Citing sources familiar with the matter, the Spanish publication added that the takeout price is close to $200 per share. This is at least the third time Intereconomia has reported on such a potential deal. Late last month, the publication said that Roche (RHHBY) and Amgen appeared to be the best positioned to acquire Alexion.

DEAL 'SHOULD HAPPEN': Piper Jaffray's Raymond reiterated an Overweight rating on both Amgen and Alexion following Intereconomia’s report saying the former is in the final phases of striking a deal to acquire the latter. While the analyst questions the validity of this report, he feels such a move "could make a ton of sense, with significant accretion even at $200/share."

Back in February, Raymond offered a scenario analysis around such a merger, and believes that even at $200 per share, an Alexion bolt-on could be accretive in 2020, offering 20% earnings accretion by 2024. At the time, the analyst noted that the the biggest pushback he got from investors centered on Amgen's current biosimilar effort and IP challenge. The "valid question that remains today" is how Amgen might extricate itself from such a fight and remain within the good graces of antitrust regulators, he contended, adding he thinks it is plausible the company could divest this biosimilar effort. Moreover, Raymond highlighted that this effort on Amgen's part was begun well before Ultomiris' clinical profile emerged.

Overall, the analyst pointed out that if the market does not see value in Alexion shares, "someone else very well could" as management has done nothing but execute since taking the reins in 2017.

PRICE ACTION:  In afternoon trading, shares of Alexion have jumped over 7% to $123.34, while Amgen's stock is fractionally up to $204.04.