Shares in Swiss biotech firm Actelion shot nearly 17 percent higher as it confirmed it had been approached by Johnson & Johnson about a possible buyout.
In a brief statement Europe's largest biotech firm "confirmed yesterday that it has been approached by Johnson & Johnson about a possible transaction," adding that there was no certainty a transaction would be completed. The US company meanwhile said "it is engaged in preliminary discussions with Actelion Pharmaceuticals Ltd regarding a potential transaction" and would make no further comments until it was appropriate to do so.
Johnson & Johnson shares rose 0.8 percent to $114.01 in midday trading in New York. Actelion shares soared in Zurich to close 16.8 percent higher at 184.50 Swiss francs.
Based in Allschwil outside the city of Basel, Actelion specialises in rare diseases and earns most of its revenue from treatments for pulmonary arterial hypertension.
The company reported 1.79bn Swiss francs ($1.76bn, ¤1.66bn) in sales in the first nine months of 2016.
