JOHNSON & JOHNSON APPROACHES ACTELION ABOUT TAKEOVER

U.S. health- care company Johnson & Johnson said on Friday it was in preliminary talks with Actelion Ltd. about a potential takeover of Europe’s largest biotech firm. Lung- disease specialist Actelion confirmed it had been approached and said there was no certainty a deal would occur. An acquisition of the Swiss company would boost J& J’s drug pipeline and diversify its prospects. J&J’s biggest product, an arthritis drug called Remicade, faces cheaper competition from Pfizer Inc. Actelion shares surged nearly 19 per cent to a peak of 187.70 Swiss francs ($250.26) on Friday, valuing the company at around US$20 billion. They closed up 16.8 per cent at 184.50 Swiss francs, more than matching the stock’s total gains this year up to Thursday’s close. The company’s focus on rare diseases makes it an attractive takeover target because drugs in that area are less prone to pricing pressure. Analysts at Bank of America Merrill Lynch and Bryan Garnier said a bid for Actelion could be worth up to 220 Swiss francs or 250 Swiss francs per share, respectively.