- Shares surge as much as 14%, biggest gain since August
- Companys said to have reached out to potential buyers
Medicines Co., a drugmaker with a market value of more than $2 billion, is exploring selling itself, according to people familiar with the matter.
The company is working with advisers and has reached out to potential buyers, said the people, who asked not to be identified because the matter isn’t public. Shares jumped 11 percent to $35.09 at 10:35 a.m. in New York.
No final decision has been made and the company may choose not to pursue a sale, they said. A spokesman for Medicines Co. declined to comment.
Revenue at Parsippany, New Jersey-based Medicines Co. was hurt last year when its blood thinner Angiomax lost patent protection, allowing cheaper generic copies to enter the market. The drugmaker has several experimental treatments under development including the antibiotic Carbavance, a surgical drug, and an injected drug licensed from Alnylam Pharmaceuticals Inc., called a PCSK9 inhibitor, designed to lower bad cholesterol.
Medicines Co. also looked at options for its business last year, when it explored a potential sale of its European unit, people familiar with the matter said in June.
Its shares have gained 28 percent in the last 12 months, compared with a 14 percent decline in the broader Nasdaq Biotechnology Index, as of Tuesday’s close.
A sale of the company would continue a trend of deals in the industry, after a record 2015 when health-care companies announced or completed more than $600 billion worth of transactions.