As has been evident since the start of the year, one of the "known unknowns" of 2019 is that this year is likely to be a year of pharma consolidation, something which puts drugs solutions group Consort Medical at the right place at the right time.
As recently as last month Consort Medical looked to be one such company in the frame with alleged private equity interest – possibly CVC, and / or a UK based rival. Indeed, there were comments in the mainstream media acknowledging that the company is a contender for M&A action, even though this was not necessarily believed.
Certainly, after the hit the stock took from September to December shareholders will be looking for salvation of some kind. The prospect of such salvation does indeed look to be imminent, with this now possible as soon as the end of this week according to those who allege being familar with the situation.
What is worth noticing from a technical basis is that after the as yet unfilled chart gap higher through the 50 day moving average now at 885p at the end of January, the stock has held above the gap, and has bounced off the 50 day line today. Indeed, this gap signal is normally a very reliably signal in its own right, even if the rumour mill was not already surrounding the company. A break of 910p - last month's resistance line is probably all it would take to flag that Consort Medical is a M&A, with today's strong price action and the spike in buy volume at the end of last month helping back the idea that the company is very much in play. Only sub the top of the gap at 860p would suggest an extended delay to positive action here.