Roche seeks financing for potential Alexion takeover -sources
2:52 PM ET, 07/12/2013 - Reuters
NEW YORK, July 12 (Reuters) - Swiss drugmaker Roche Holding AG is seeking financing for a potential takeover of Alexion Pharmaceuticals Inc, two people familiar with the matter said on Friday.
Roche declined to comment while Alexion could not be immediately reached for comment. The sources asked not to be identified because the matter is not public.
Shares of Alexion surged 17 percent to $119.02 on the Nasdaq market on Friday, valuing the company at more than $23 billion, after Bloomberg first reported Roche's bid plans for the company.
UPDATE: Alexion Pharm (ALXN) Ramps as Roche (RHHBY) Seeks to Make Bid (ILMN)
2:03 PM ET, 07/12/2013 - Street Insider
(Updated - July 12, 20132:34 PM EDT)
Alexion Pharmaceuticals (Nasdaq: ALXN) ripped higher today on reports that cancer drug giant Roche (OTCBB: RHHBY) might be seeking financing to make a bid for the company.
The two have been in contact on-and-off for months, Bloomberg notes today, citing people familiar with the matter. Nothing is set in stone yet and the deal might fall apart.
Alexion's only approved drug is Soliris, used to treat rare blood diseases.
The two diseases that Soliris is approved for treats less than 20,000 people, but generates $1.13 billion in revs during 2012. Cost of the drug is $400,000 per year.
Prior to today's move, Alexion was a little rich at 34 times expected earnings, the highest among biotech peers.
Roche made a $6.7 billion hostile bid for Illumina (Nasdaq: ILMN) last year for gene-sequencing equipment, but ultimately failed as shareholders held out for a higher price.
No speculation was made on what Alexion would draw in a deal.
Alexion is up 14 percent after ramping as high as 24 percent today