• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Drug Delivery Business

  • Clinical Trials
  • Research & Development
  • Drug-Device Combinations
  • FDA
  • Pharmaceuticals
  • Policy

Report: J&J raises the stakes in Actelion pursuit

November 30, 2016 By Sarah Faulkner

Report: J&J raises the stakes in Actelion pursuitJohnson & Johnson (NYSE:JNJ) has reportedly raised its offer for Swiss biotech firm Actelion Pharmaceuticals (VTX:ATLN), pressuring the company to accept a takeover deal.

The companies have been in talks for nearly 2 months but so far have not reached a deal, according to Reuters.

The news outlet reported that Actelion wants J&J to become a major shareholder in a new entity, which would combine the Swiss group with some of J&J’s activities. But J&J is interested in a straightforward takeover.

Following news of the higher offer, Actelion shares closed up +10% at 209 Swiss francs.

Actelion co-founder and CEO Jean-Paul Clozel has repeatedly insisted that the company should remain independent, rallying shareholders in 2011 against an investor’s campaign to put the firm up for sale. Since then, Actelion’s shares have more than tripled.

Actelion shares soared last week after news of the initial offer, up +19% to a peak of 187.70 Swiss francs, which put the company at a value of $20 billion.

Allschwil, Switzerland-based Actelion’s drugs, Opsumit and Uptravi, treat high pressure in blood vessels to the lungs and analysts forecast the 2 could generate more than $4.6 billion in 2020 sales, up from an estimated $1.4 billion this year. The company’s expanding pipeline focuses on treatments for rare diseases, making it an attractive takeover target for buyers on the lookout for drugs with less pricing pressure.

When talks began in October, the 2 companies originally discussed focusing on a share deal or an asset swap, Reuters reported. Director of the London-based consultancy Novasecta John Rountree told the news outlet that a structured transaction could allow Actelion to benefit from J&J’s scale without sacrificing its independence.

J&J could also take a lesson from Roche (PINK:RHHBY), which bought 60% of Genentech in 1990 before acquiring the rest of it in 2009.

Shares in both companies have come down since the initial offer. JNJ shares were trading at $111.72 apiece in afternoon trading, down -0.7%, while ATLN shares were trading at 200 Swiss francs, down -3.9%.

Filed Under: Mergers & Acquisitions, Pharmaceuticals, Wall Street Beat Tagged With: Actelion Pharmaceuticals, johnsonandjohnson, Roche

IN CASE YOU MISSED IT

  • MedAlliance wins second FDA IDE nod for drug-coated balloon
  • Wells Fargo downgrades Tandem amid rise of automated insulin delivery competition
  • FDA approves first targeted infusion therapy for HER2-low breast cancer
  • Abbott, WeightWatchers partner on diabetes care
  • Insulet up on Q2 sales beat, raised full-year guidance

Primary Sidebar

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Need Drug Delivery Business News in a minute? We Deliver!
Drug Delivery Enewsletters get you caught up on all the mission critical news you need in med tech. Sign up today.

Signup for the newsletter

Footer

Drug Delivery Business News Logo

MassDevice Medical NETWORK

MassDevice
DeviceTalks
Medical Tubing & Extrusion
Medical Design & Outsourcing
MedTech100 Index
Drug Discovery & Development
Pharmaceutical Processing World
Medical Design Sourcing
R&D World

DRUG DELIVERY BUSINESS NEWS

Subscribe to Drug Delivery’s E-Newsletter
Advertise with us
About
Contact us
Privacy
Listen to our Weekly Podcasts
Add us on FacebookFollow us on TwitterConnect with us on LinkedIn

Copyright © 2022 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Advertise | Privacy Policy | RSS