J&J ends takeover talks with Actelion

REUTERS: US healthcare company Johnson & Johnson (J&J) said on Tuesday it has ended discussions with Actelion regarding a potential deal with Europe's largest biotech firm.
Actelion informed Johnson & Johnson that it was confident it could attract an offer significantly higher than the approximately 250 Swiss Francs per share that the US company had offered, according to a person familiar with the matter that requested anonymity because the negotiations were confidential. There were also disagreements about the structure of the deal, the person added.
J&J said it was not able to reach an agreement that it believed would create adequate value for its shareholders. J&J said in November that it was in preliminary talks with Actelion about a takeover of the firm, then valued at about US $ 20 billion.
Later November, a source told Reuters that Johnson & Johnson had raised its offer for Actelion stepping up pressure on the Swiss biotech firm to accept a takeover deal.
Actelion's focus on rare diseases made it an attractive takeover target because drugs in that area are less prone to pricing pressure. J&J's biggest product, the arthritis drug Remicade, faces cheaper competition from Pfizer Inc.
Investment bankers suspected broader interest from other suitors as well when the acquisition was proposed. On December 6, French drugmaker Sanofi considered a bid for the Swiss biotech company.
Actelion could not immediately be reached for comment.