Meda AB (MEDAA) had the biggest drop in more than a year after the maker of the Dymista allergy medicine said it’s not in talks to merge with another pharmaceutical company.
The stock fell 6.9 percent to 81.25 Swedish kronor at 9:16 a.m. in Stockholm, after declining as much as 9.1 percent, the steepest drop since Feb. 17, 2012. Meda had the biggest intraday gain in a year on May 31 after the Wall Street Journal reported the Solna, Sweden-based company was in talks to be acquired by Sun Pharmaceutical Industries Ltd. (SUNP) for almost $5 billion.
“There are currently no such discussions,” the drugmaker said in the statement today. “Meda’s policy is not to comment on speculation and will not do so in the future. This announcement is an exception to our policy.”
Sun, India’s biggest drugmaker by market value, is looking to expand in the U.S. and Europe and last year considered a purchase of German generic-drug maker Stada Arzneimittel AG (SAZ), people with knowledge of the matter said at the time. Meda makes nervous-system, pain and inflammation treatments which generated sales of 12.9 billion Swedish kronor in 2012 ($2 billion).
While Meda seems like an “adequate target” for Sun due to location and product portfolio, Stada remains “the simplest route for Sun to build up significant business in Western and Eastern Europe,” Thomas Maul, an analyst with DZ Bank AG, said in a note to investors today.
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