J&J Eyeing Actelion in Possible Takeover Bid - Drug Discovery and Development

Johnson & Johnson has approached Swiss drugmaker Actelion Ltd. in a possible takeover bid, according to a report by Bloomberg that cited “people familiar with the matter.”

Actelion is a $17 billion biotech company focused largely on pulmonary arterial hypertension (PAH) medication with a portfolio of oral, inhaled and intravenous treatments.

The company targets a range of disorders around the globe, including Type 1 Gaucher disease, Niemann-Pick type C disease, Digital Ulcers in patients suffering from systemic sclerosis, and mycosis fungoides in patients with cutaneous T-cell lymphoma.

While neither company involved commented on the possible takeover report, deliberations were said to be in the early stages with Actelion working with an advisor “to explore options.”

Johnson & Johnson executives previously have expressed interest in expanding the company’s portfolio in the pharmaceutical products, medical device and the consumer markets.

Actelion had been the subject of frequent acquisition rumors in the past. The company was said to be looking to reduce its reliance on the PAH drug Tracleer, which faces competition from less expensive generics early next year.

But, analysts expect revenue from the company’s PAH drug Opsumit to surpass $1 billion in 2017, while sales of its Uptravi are estimated to exceed the $1 billion mark in 2019.

Shares of Actelion rose sharply in Zurich early today following news of the possible takeover bid. By late morning, the shares were up nearly 11 percent to just under Swiss franc 175 ($173).

Johnson & Johnson on Wednesday had closed at $113.07, up 33 cents. The company is valued at more than $300 billion.

(Source: Bloomberg)