Johnson and Johnson makes takeover approach for Actelion

Johnson and Johnson has approached Actelion about a potential takeover of the $17 billion Swiss drugmaker as the US health-care giant works to expand its pharmaceutical lineup, people familiar with the matter said.

Deliberations are still at an early stage following J&J’s initial offer, the people said, asking not to be identified because the talks are private.

Actelion is working with an adviser to explore options, and any discussions may not lead to a transaction, the people said. Shares of Actelion jumped by the most in more than two years.

While Actelion, Europe’s largest biotech firm, has been named as a potential takeover target for years, chief executive officer and co-founder Jean-Paul Clozel has previously said the company planned to remain independent.

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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 $246 billion of pharmaceutical deals announced this year, data compiled by Bloomberg show.

Representatives for J&J andAllschwil, Switzerland-based Actelion declined to comment.

Actelion gained 9.8 per cent, the most since June 2014, to 173.50 Swiss francs as of 9.10am on Friday.

The shares had previously risen 13 per cent this year, valuing it at almost $17 billion.

(Bloomberg)