Shares in
Actelion Ltd (ATLN.S)
jumped as much as 19 percent to record highs on Friday on reports that U.S.
healthcare company Johnson & Johnson (JNJ.N)
was
interested in a takeover of the fast-growing Swiss biotechnology firm.
A person
familiar with the situation told Reuters that Johnson & Johnson (J&J) (JNJ.N)
had met Actelion about a deal, and that there was broader interest from
prospective suitors in the industry, after Bloomberg on Thursday reported
J&J's interest.Deliberations were still at an early stage and Actelion was
working with an adviser to explore options, Bloomberg said in its report. (bloom.bg/2g8UTe3)
Actelion
declined to comment. J&J did not immediately respond to a request for
comment.
The Swiss lung
disease specialist has been seen as a takeover target. Any confirmation of
talks by J&J or Actelion would probably prompt competing bids, "most
likely from" larger Swiss peer Novartis (NOVN.S),
one investment banker told Reuters. Another source close to Novartis, however,
said the drugmaker was not very impressed by Actelion's drug development
pipeline.
Actelion
shares surged by 18.8 percent at one point to a peak of 187.70 Swiss francs,
valuing the company at around $20 billion. They were up 13.9 percent by 1249
GMT (7:49 a.m. ET), virtually matching the share's total gains this year up to
Thursday's close.
Eric Le
Berrigaud, an analyst at brokerage Bryan Garnier, also expected big Swiss
drugmakers to express interest in Actelion if either Actelion or J&J
confirm their talks.
"We
should then see many other (companies) interested (in Actelion). That will
probably include at least one of the two other Basel-based companies," Le
Berrigaud said, referring to Novartis and Roche (ROG.S).
Analysts at
Bank of America Merrill Lynch and Bryan Garnier said a bid could be worth up to
220 francs or 250 francs per share, respectively, stoked by appetite in the
industry for fast growing businesses.
Actelion's
Opsumit and Uptravi drugs to treat the life-threatening condition of high
pressure in blood vessels to the lungs will generate more than $4.6 billion in
combined 2020 sales, analysts forecast, up from an estimated 1.4 billion this
year.
((For a
FACTBOX see))
Actelion's
recently launched drugs would be attractive to big pharmaceutical companies
with deep pockets, but its co-founder and Chief Executive Jean-Paul Clozel, who
holds a 3.5 percent stake, could put up a fight as he has repeatedly said he
wants the company to remain independent.
In 2011, he
managed to rally shareholders against activist investor Elliott's campaign to
put the biotech firm on the auction block. The shares have more than tripled
since then.
"We continue
to believe that management, as quoted on many conference calls and public
presentations, remains committed to Actelion as an independent company,"
Barclays analysts said.
J&J agreed
to buy Abbott Laboratories' (ABT.N)
eye care business for about $4.33 billion in cash in September and Chief
Executive Alex Gorsky said earlier this year that the company was interested in
deals to expand its main consumer, medical device and pharmaceuticals segments.
J&J had
derived about half its revenue from acquired products, he said.
In October,
Actelion raised its earnings guidance for the third time this year as sales
from Opsumit and Uptravi for the first time surpassed those of Tracleer, its
decade-long mainstay that lost U.S. patent protection last November.
0 Comments