×

Cancer drug maker Tesaro attracts takeover interest: Sources

Kasto80 | iStock / 360 | Getty Images

U.S. biopharmaceutical company Tesaro is discussing its options with investment banks after receiving acquisition interest from several drug makers, according to people familiar with the matter.

The stock was briefly halted for volatility following the news. It was last seen 10 percent higher in midday trading Wednesday.

Tesaro is not actively exploring a sale, the people said this week, noting that there is a significant gap over the company's valuation between Tesaro and potential acquirers.

However, the Waltham, Massachussets-based company is speaking to investment banks, including Citigroup Inc, about its strategy and how to best respond to such overtures, the people added.

Additional clinical trial data later this year on Tesaro's key drug, Niraparib, which targets advanced solid tumors in ovarian and breast cancers, could help narrow the valuation gap, the people said.

The sources asked not to be identified because the deliberations are confidential.

Tesaro and Citigroup declined to comment.