Exclusive: Oppenheimer Says Insys-Mallinckrodt Merger Not Any More Likely Than It Was 4 Months Ago

A source familiar with the matter told Benzinga Tuesday that Mallinckrodt PLC (NYSE: MNK) was in talks to acquire Insys Therapeutics Inc (NASDAQ: INSY) in a transaction valuing shares at around $65.

Shares of Insys were trading higher by more than 6 percent Wednesday.

Speaking to Benzinga on Wednesday, Oppenheimer analyst Akiva Felt said that progression of rumor between the two companies is "still stagnant," but he added that it "fits into" Mallinckrodt's strategy.

The analyst also added that he "doesn't know why it would be more likely now versus four months ago."

Finally, when asked if a consolidation is expected between large biotech companies and smaller cannabis companies, Felt suggested that analysts are "talking down" on M&A chatter of that magnitude.