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Dutch vaccine maker Crucell said Wednesday it is in friendly merger discussions with U.S. drugmaker Wyeth, but noted the talks were at a preliminary stage and there is no certainty a deal will result.
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Crucell, one of the world's few remaining independent vaccine makers, confirmed the talks in a short release, providing no details and saying it would provide an update "in due course."
A Wyeth spokesman declined to comment, saying, "I refer you to their (Crucell's) statement."
Wyeth [WYE
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] is one of the world's most prominent vaccine makers, whose products include the blockbuster Prevnar vaccine to protect infants and young children from infections with pneumococcal bacteria.
The Wall Street Journal, citing persons familiar with the situation, said in its online edition late Wednesday that a deal between the two companies could be reached within a week.
The report said Crucell [CRXL
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] could be valued at at more than $1.35 billion, but noted talks could take longer and that another vaccine maker such as Novartis [NVS
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] or Sanofi-Aventis [SNY
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] could instead win Crucell.
Nasdaq-traded shares of Crucell rose after the Wall Street Journal report and then were halted late on Wednesday. They rose further once trade resumed after hours.
Crucell in November posted its first-ever quarterly profit, boosted by sales of its vaccines and cost savings, and raised its 2008 sales outlook, lifting its shares to a three-month high.
It reported a third-quarter net profit of $15.9 million, compared with a $5.8 million loss in the year-earlier period.
Results were fueled by strong growth in its pediatric vaccines, especially Quinvaxem, a vaccine cocktail for the childhood diseases diphtheria, tetanus, whooping cough and hepatitis B.
It is also testing a vaccine that has prevented monkeys from being infected with a monkey version of HIV, offering hope there is still a chance of developing a human vaccine against the virus that causes AIDS.
Wyeth Chief Executive Bernard Poussot earlier on Wednesday said his company's strong cash position could enable it to make new biotech acquisitions despite competition from generic drugmakers for several of its biggest prescription drugs.
Poussot said Wyeth, with $14 billion in cash, is in good shape for acquiring "attractive technologies."
"Our goal is to deliver reliable and sustainable growth over the years," he said. "To achieve that, our best strategy is to build one of the most global diversified biopharmaceutical companies."
Wyeth, with global annual sales of more than $20 billion and a wide array of medicines and vaccines, is one of the largest U.S. drugmakers.
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