J&J in Actelion takeover talks

JOHNSON & Johnson (J&J) has approached Actelion Ltd about a potential takeover of the US$17 billion (RM76 billion) Swiss drugmaker as the United States healthcare giant works to expand its pharmaceutical line-up, people familiar with the matter said.

Deliberations are still at an early stage following J&J’s initial offer, the people said. Actelion is working with an adviser to explore options, and any discussions may not lead to a transaction, the people said.

While Actelion, Europe’s largest biotech firm, has been named as a potential takeover target for years, chief executive officer and cofounder 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 US$246 billion of pharmaceutical deals announced this year, data compiled by Bloomberg show.

Actelion gained 1.9 per cent to close at 158 Swiss francs (RM693) on Thursday after a report from StreetInsider.com said the company had attracted takeover interest.

The shares have risen 13 per cent this year, valuing it at almost US$17 billion. New Brunswick, New Jerseybased J&J, with a market capitalisation of about US$308 billion, has risen 10 per cent this year.

J&J chief financial officer Dominic Caruso has said he would consider deals of any size that fit into the strategy of building up its three main businesses — consumer, medical devices and pharmaceuticals. The company agreed to buy the eyesurgery equipment unit of Abbott Laboratories for US$4.33 billion in September.

Actelion has brought to market two new lung medicines that are poised to become blockbusters over the next three years. That will reduce dependence on Tracleer, a medicine to treat a type of high blood pressure that affects arteries in the lungs, which accounted for more than half its revenue last year.

Sales of Tracleer may plummet following the introduction of cheaper copycats in the first quarter of next year.

Meanwhile, revenue from Opsumit is projected to surpass US$1 billion next year, while Uptravi is forecast to cross that threshold in 2019, according to analysts surveyed by Bloomberg. Bloomberg

EARLY STAGES: US healthcare giant working to expand pharmaceutical line-up