Johnson & Johnson Approaches Swiss Firm Actelion About Potential Deal -- Update
November 25 2016 - 12:33PM
Dow Jones News
By Austen Hufford
Swiss biopharmaceutical company Actelion Ltd. said Friday that
it had been approached by Johnson & Johnson about a possible
deal.
As of Wednesday's close, Actelion had a market value of about
16.7 billion Swiss francs ($16.4 billion). With a typical takeover
premium of 25% or more, a deal for the company would be valued at
more than $20 billion. Johnson & Johnson's market value is more
than $300 billion.
Shares of Actelion rose 16% to 182.40 Swiss francs on the SIX
Swiss Exchange.
J&J confirmed Friday that it is in "preliminary discussions"
with Actelion. It isn't clear where talks between the companies
stand or whether Actelion is receptive.
Actelion makes drugs for rare diseases, with a focus on
pulmonary arterial hypertension, or PAH, a type of high blood
pressure that affects arteries in the lungs and in the heart.
Actelion was founded in 1997 by Jean-Paul Clozel and other
former Roche Holding Ltd. employees who left the Swiss drug giant
after it decided not to pursue a project their group was working
on, according to its website. In 2000, Actelion went public and its
valuation has climbed sharply since then.
Last year, the company reported revenue of 2.05 billion francs
and a profit of 551.9 million francs.
Johnson & Johnson, based in New Brunswick, N.J., makes an
array of products from baby soap to Tylenol pills and devices that
manage diabetes care.
The company has been acquisitive as of late. In September, it
reached a deal to buy Abbott Laboratories' eye-surgery equipment
business for $4.3 billion.
Bloomberg had reported Thursday that J&J had made an initial
bid for the specialty drug company.
Shares of J&J rose 0.7% to $113.91 in morning trading in the
U.S.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
November 25, 2016 12:18 ET (17:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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