A report by the Wall Street Journal, indicating that Merck & Co. and Allergan Plc have each considered a takeover of Biogen Inc., set shares of the biotech company off on Tuesday.
Biogen shares climbed 9.4 percent to $330.11 at the close in New York. This was their biggest one-day gain since March of last year.
Citing sources familiar with the matter, the Wall Street Journal reported that the talks were informal, preliminary, and that Biogen may not be interested in a deal.
CNBC had also reported separately that Allergan was unlikely to pursue a deal, citing an anonymous source.
Biogen spokesman, Jason Glashow, declined to comment and Mark Marmur, an Allergan spokesman, and Lainie Keller, a Merck spokeswoman, also declined to comment.
It wasn’t too long ago that Biogen announced their CEO George Scangos would step down and the company would search for a replacement.
According to Micheal Yee, an analyst with RBC Capital Markets Corp., Biogen could be worth $375 to $475 a share in a takeover, depending how optimistic a buyer is about the Alzheimer’s drug or Biogen’s future profits.
Jefferies Group analyst Brian Abrahams, cited a potential takeout price of $400 a share.
A $375 a share price would be a 24 percent premium to the stock’s $301.83 closing price Monday.
Disclaimer: We have no position in Biogen Inc. (NASDAQ: BIIB), Allergan (NYSE: ACT), nor Merck & Co., Inc. (NYSE: MRK) and have not been compensated for this article.