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Sanofi to Explore Counterbid for Actelion Amid J&J Talks

Updated

By Bloomberg

Sanofi is considering a counterbid for Actelion Ltd., potentially challenging a move by U.S. health-care giant Johnson & Johnson to acquire the Swiss biotechnology firm, people familiar with the matter said.

Sanofi Logo | Manila Bulletin

Sanofi Logo | Manila Bulletin

The French drugmaker is working with advisers as it weighs its options, said the people, who asked not to be identified because the deliberations are private. Sanofi, which has informally made its interest known to Actelion, hasn’t made a final decision on whether to proceed with a bid, the people said.

J&J’s talks to acquire Actelion are progressing after it increased its offer, people familiar with the matter said on Friday, ratcheting up pressure on potential counter bidders to move quickly. The U.S. company raised its bid above $250 a share, a person familiar said last week, which would value Actelion, Europe’s largest biotech company, at more than $27 billion.

In addition to Sanofi, advisers seeking work with prospective buyers have reached out to other drugmakers, including Roche Holding AG of Switzerland and Pfizer Inc., to gauge potential interest in bidding for Actelion, the people said. It couldn’t be determined whether they showed any interest.

Novartis AG CEO Joe Jimenez ruled out a counterbid for Actelion in an interview with SonntagsBlick newspaper published Sunday, saying the Swiss drugmaker is focused on acquisitions of less than $5 billion.

Representatives for Roche, Pfizer and Paris-based Sanofi declined to comment. Allschwil, Switzerland-based Actelion couldn’t be reached for comment outside of regular business hours.

CEO’s Stance

Any deal will hinge on winning over the company’s Chief Executive Officer and co-founder, Jean-Paul Clozel. Clozel, 61, is one of the company’s largest shareholders and has previously said he wants Actelion to remain independent. Still, the company may be more open to entertaining a sale at a sufficient premium, a person familiar with the deliberations had said.

Sanofi lost out on a deal to buy Medivation Inc. earlier this year, giving rival Pfizer a blockbuster prostate-cancer treatment, Xtandi. Pfizer’s offer valued Medivation at about $14 billion. Sanofi Chief Executive Officer Olivier Brandicourt said that while he was disappointed, the company would be ready to “act rather swiftly,” if a new target arose.

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