BioSante Pharma retains Deutsche Bank as adviser

Biosante is developing LibiGel, a topical testosterone gel, as a treatment for female sexual dysfunction. The gel is currently in late-stage trials and the company hopes to file for Food and Drug Administration approval in 2010 for a potential commercial launch in 2011.

Shares were flat in morning trading at $4.20.

Oppenheimer & Co. analyst Kevin DeGeeter thinks an outright sale of the company is more likely than a partnership for LibiGel, and believes the company could garner $10.50 to $11 per share in a takeout before year-end.

"The announcement is in line with our investment thesis, which calls for a potential sale of the company prior to the release of Phase III LibiGel data in the second half of 2009," he wrote in a note to clients.

DeGeeter said potential acquirers could include Watson Pharmaceuticals, Johnson & Johnson or Solvay, and noted that any deal also would benefit Antares Pharma Inc., since that company receives a fixed royalty on BioSante's LibiGel and Elestrin products.