JNJ Johnson and Johnson

By Jonathan D. Rockoff and Dana Mattioli 

French drug giant Sanofi SA is in talks for a deal with Actelion Pharmaceuticals Ltd., according to people familiar with the matter, as Johnson & Johnson abandon its pursuit of the Swiss drug company.

It isn't clear what price Sanofi is discussing paying or what structure is envisioned, but people familiar with the matter have said a deal could value Actelion at as much as $30 billion.

J&J said earlier Tuesday it had bowed out of the bidding, a move people familiar with the matter attributed to its unwillingness to pay the price necessary to seal a deal for Actelion. After J&J's announcement, Actelion issued its own statement, saying it was "engaged in discussions with another party" without giving more detail. People familiar with the matter said the party is Sanofi, which recently lost a heated auction it kicked off, for cancer biotech Medivation Inc.

Actelion, which has been resistant to takeover overtures in the past, could ultimately decide to remain independent or strike a deal that falls short of a full takeover. Likewise, Sanofi could walk way if it also concludes that the price is too steep, especially now that it doesn't have competition.

(More to come.)

Write to Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com and Dana Mattioli at dana.mattioli@wsj.com

(END) Dow Jones Newswires

December 13, 2016 23:18 ET (04:18 GMT)

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