According to sources close to the matter, Johnson & Johnson (NYSE:JNJ) has tentatively agreed on an acquisition price for Actelion Ltd. (OTCPK:ALIOY). The negotiations are now focused on valuing the new R&D unit.
Complicated takeover? Johnson & Johnson (NYSE:JNJ) and Actelion (OTCPK:ALIOY) have asked Switzerland's takeover board about a deal structure that would separate the latter's commercialized portfolio from its R&D assets, Tages-Anzeiger reports.
That would allow J&J to acquire Actelion with a cash offer in the region of $260 per share, a little more than what it had offered when it walked away from negotiations in December.
JNJ had edged out Sanofi from the bidding after entering exclusive talks with the Swiss biotech. Now the negotiations involve separating Actelion's commercialized portfolio from research and development.
That would provide for an acquisition in the range of $260/share (slightly more than a previously rejected $250/share) and yet allow Actelion holders to benefit from the R&D pipeline, which would be put into a new publicly traded company.
Johnson & Johnson (JNJ -0.3%) reports that it is negotiating with Actelion (OTCPK:ALIOY) about a possible transaction, an about-face from its earlier withdrawal after Actelion's apparent rejection of its $250/share bid. Sanofi (SNY +2.2%) is also in the running for the Swiss biopharma firm at ~$275/share.
Bloomberg reports that Sanofi (NYSE:SNY) is mulling a bid for Actelion, potentially challenging Johnson & Johnson's (NYSE:JNJ) $250-a-share offer. If so, it will be pricey. Actelion is currently valued at ~$20B.
Novartis (NYSE:NVS) CEO Joe Jimenez has played down suggestions the drugmaker could bid for Swiss biotech group Actelion (OTCPK:ALIOY), which is in talks with Johnson & Johnson (NYSE:JNJ) about a transaction.
Asked by SonntagsBlick whether Novartis could emerge as a white knight, he said: "We have always said that we will concentrate on complementary acquisitions in the range of $2B-$5B."
Actelion is worth nearly $20B at Friday's closing price.
Bloomberg reports that, according to sources close to the matter, Johnson & Johnson's (NYSE:JNJ) bid for Actelion (OTCPK:ALIOY) is now north of $250, $4 above its initial offer of $246, which Actelion rejected.
According to Mirabaud analyst Nick Turner, the revised bid, a modest 1.6% above the initial price, may get the job done.
The rollercoaster in the price of Actelion (OTCPK:ALIOY +15.9%) continues. Shares have rebounded sharply from an earlier sell-off in response to the news that suitor Johnson & Johnson (JNJ -0.7%) has raised its offer for the Swiss biotech.
Actelion (OTCPK:ALIOY) shares are down almost 6% in Zurich on reports that it is resisting Johnson & Johnson's (NYSE:JNJ) $17B offer for an outright sale. The aim of the complicated deal structure previously reported is to enable the company to remain independent while allowing J&J's U.S. group to retain a major equity stake.
Lurking in the background is Sanofi (NYSE:SNY) which could jump into the mix considering its widely-known interest in acquisitions since it plans to divest its generics business. Sanofi shares are up over 1% in Paris.
Actelion (OTCPK:ALIOY) is considering a complicated deal to combine with part of Johnson & Johnson (NYSE:JNJ), a move that will leave the Swiss company independent from the U.S. drugs giant, FT reports.
The structured transaction would create a new, larger biotech firm uniting Actelion with relevant parts of J&J's pharma business, with the latter becoming a major shareholder in the new business.
Johnson & Johnson (JNJ -0.1%) inks an agreement with Abbott Laboratories (ABT +1.5%) to acquire its Medical Optics unit for $4.325B in cash. The business generated $1.1B in revenues last year in three business segments: cataract surgery, laser refractive surgery and consumer eye health.
The deal, expected to close in Q1 2017, will be modestly accretive to JNJ's non-GAAP 2017 earnings.
Impax Laboratories (NASDAQ:IPXL) acquires a group of 15 generic drugs from Teva Pharmaceutical Industries (NYSE:TEVA) and affiliates of Allergan (NYSE:AGN) for total consideration of $586M. The transaction also includes the return of the rights to the pending abbreviated New Drug Application (ANDA) for a generic version of Johnson & Johnson's (NYSE:JNJ) Concerta (methylphenidate hydrochloride) to Impax.
The deal will be immediately accretive to Impax's earnings. The group generated ~$150M in sales and ~$100M in gross profit in 2015. Per IMS, the U.S. market for the portfolio is ~$3.1B.
Impax will finance the acquisition with cash on hand and $400M in term loans.
Teva divested the products to satisfy U.S. Federal Trade Commission conditions for its planned acquisition of Allergan's generics business.