A possible $8 billion-plus bid for Britain's Amersham buoyed share values across the European healthcare sector today as investors bet on more mergers and acquisitions in a still fragmented industry.
Health has already proved to be one of this year's hottest sectors for dealmaking, since stabilising stock markets have made companies more confident about acquisitions.
But the sector - particularly medical technology and biotechnology - remains home to many players with limited market share and global reach.
"If you compare healthcare with any other global industry, like automotive or consumer electronics, it is clear it is still heavily fragmented," said Mr Martyn Postle, head of consultants Cambridge Healthcare & Biotech.
Amersham, whose shares leapt as much as 25 percent to value the group at around $8 billion after it announced it had received a bid approach, gave no indication of who its suitor might be.
But industry analysts bet on interest from a major diagnostics company like US-based Johnson & Johnson or Switzerland's Roche .