Leerink analyst Jason Gerberry views the central nervous system as hottest space within specialty pharmaceuticals for M&A activity in 2016-2017. The CNS space has the deepest set of pipeline targets that address unmet needs and the apparent support of payers if pivotal studies support the target product profile, Gerberry tells investors in a white paper research note. Allergan (AGN) and Teva (TEVA) look best positioned as potential acquirers, the analyst contends. He recommends owning small- to mid-capitalization potential takeover targets, including ACADIA (ACAD), Alder Biopharmaceuticals (ALDR), Neurocrine (NBIX) and Intra-Cellular (ITCI). The analyst has Outperform ratings on all four of those names.