Actelion in talks with ZS Pharma amid surge in biotech deal-making
Friday, September 11, 2015
Swiss drugmaker Actelion Ltd has initiated preliminary discussions with U.S. biotech company ZS Pharma Inc, marking the latest bout of deal-making in a healthcare sector that has seen a wave of recent takeovers.
Actelion, Europe's biggest biotech company, and ZS Pharma both issued statements late on Thursday stating that they had held preliminary discussions, but did not specifically mention if the talks were related to a buyout.
ZS Pharma said the talks were "regarding a potential strategic transaction" and Actelion said the talks were "without any commitment on either party".
Bloomberg had reported earlier that Actelion had offered to buy ZS Pharma last month in a deal valued at $2.5 billion.
ZS Pharma's shares had spiked nearly 46 percent to touch a record high of $84.85 after the Bloomberg report. They closed up 28.4 percent, valuing the company at $1.9 billion.
Shares in Actelion fell 3 percent on Friday morning, valuing the company at around $15.5 billion.
Actelion has a dominant position in treatments for pulmonary arterial hypertension, which weakens the heart, but is looking at ways to expand its sources of revenue. Its original blockbuster drug Tracleer is about to lose patent protection, although sales of new product Opsumit are growing.
The Swiss group has itself often been the subject of takeover talk and its shares leapt in June on speculation that Shire was considering a $19 billion bid.
San Mateo, California-based ZS Pharma's lead experimental drug, ZS-9, is aimed at treating hyperalkemia, a build up of potassium in the body that could lead to heart failure.
The company filed a marketing application for ZS-9 with the U.S. Food and Drug Administration in May. The FDA is expected to issue a ruling on the application in May next year.
Healthcare deal-making hit a record of $392.4 billion in 2014 and has already surpassed that level this year, topping $430 billion in August, according to Thomson Reuters data.
reuters.com
