A Bloomberg report said investor interest in drugmaker Actelion Ltd increased after the approval of its drug for lung disease was given by a regulator. Last week, an advisory panel of the European Union recommended the drug for approval. In turn, the executive arm of EU, The European Commission, followed the EU advisory panel's recommendation. Opsumit was given regulatory approval on October 15.
The drug, according to analysts, was estimated to generate USD1.5 billion in revenue for Actelion by 2017. The lung disease drug was said to be a good investment indicator for interested buyers of the Switzerland-based company. Jefferies Group LLC had said major companies like Bayer AG to GlaxoSmithKline Plc would now feel more secured on acquiring Actelion. UBS AG said other potential bidders would also need to watch the drugmaker's new drug selexipag, which would release data of its successful Phase 3 testing in the middle of next year.
Swiss Helvetia Fund co-manager Philippe Comby of Hottinger Capital Corp said, "The risk is out and it's going to make it more attractive and easier for the company to be valued. It's probably an M&A candidate for sure now."
Join the Conversation