J&J approaches Actelion on takeover

Bloomberg

Actelion Ltd. said that Johnson & Johnson has approached it about a potential takeover of the $17 billion Swiss drugmaker, as the US health-care giant works to expand its pharmaceutical lineup.
Actelion confirmed the approach in a statement and said it’s not certain that a deal will happen. Actelion is working with an adviser to explore options, and the deliberations are still at an early stage following J&J’s initial offer, according to people familiar with the matter, who asked not to be identified because the talks are private. The company may also attract other suitors, such as Novartis AG and Sanofi, separate people with knowledge of the matter said. Representatives for J&J didn’t immediately respond to requests for comment on Friday.
Shares of Allschwil, Switzerland-based Actelion jumped the most since April 2012 on Friday. While Actelion, Europe’s largest biotech firm, has been named as a potential takeover target for years, Chief Executive Officer and co-founder Jean-Paul Clozel has previously said the company planned to remain independent. The 61-year-old, who is one of Actelion’s largest shareholders, may now be more open to entertaining a sale at a sufficient premium, one of the people said. An acquisition would add to the $246 billion of pharmaceutical deals announced this year, data compiled by Bloomberg show.
Actelion shares were up 16 percent to 184 Swiss francs at 5:22 p.m. in Zurich Friday after earlier jumping as much as 19 percent, the biggest intraday gain since April 2012. The shares had risen 13 percent this year through Thursday. New Brunswick, New Jersey-based J&J, with a market capitalization of about $308 billion, rose less than 1 percent to $113.96.
A bid for Actelion could go as high as 250 Swiss francs, said Eric Le Berrigaud, an analyst at Bryan Garnier & Co. in Paris. Sanofi in particular would benefit, he said. “It fits really well with what Sanofi is looking for,’’ Le Berrigaud said.