Johnson & Johnson JNJ 0.01% has reportedly abandoned its buyout bid for Actelion Ltd ALIOF 16.18%.
No Deal
Johnson & Johnson said that is was unable to come to terms on a deal that the company believes would have created adequate value for shareholders. Actelion is now reportedly involved in buyout talks with Sanofi SA (ADR) SNY 2.36%.
However, just because Johnson & Johnson is abandoning its efforts for Actelion doesn’t mean it is changing strategies. Actelion is a major player in the relatively small pulmonary arterial hypertension (PAH) treatment market. The condition affects only about 100,000 patients in the United States and Europe.
Focusing In On Peers
Johnson & Johnson could now shift its attention to one of the other names in the space. Private biotech companies like MORPHOGEN-IX and Reviva Pharmaceuticals are working on treatments.
In the public market, Eiger Biopharmaceuticals Inc EIGR 1.28%, Bellerophon Therapeutics Inc BLPH 4.17% and Reata Pharmaceuticals Inc RETA 1.63% are also active in the PAH market.
Johnson & Johnson may not have gotten a price it liked for Actelion, but any of the names mentioned above would be far cheaper alternatives. Actelion’s market cap is currently $22.3 billion. Eiger, Bellerophon and Reata have…
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