Pfizer is reportedly paying hundreds of millions of dollars for Rinat Neurosciences, a neuropharma company that has been developing therapies for pain, Alzheimer's and other neurological diseases. Terms of the deal weren't disclosed, but Pfizer has been rapidly adding to its pipeline by avidly buying up developers with promising therapies. Rinat has gained a reputation for its work on injectable protein-based therapies. The CEO of Rinat said that licensing talks turned to an offer of a buyout.

This is just another sign that a growing number of neurotech companies are going to establish their best valuation by an outright acquisition. With big pharma companies scrambling for new drugs and armed with billions of newly repatriated dollars, smaller biotech companies are looking like good investments. Add a somewhat sour market environment for IPOs and you have all the ingredients necessary for a big wave of acquisitions.

For a comprehensive analysis of neurotech M&A see the newly released Neurotechnology Industry 2006 Report.