Allergan will not bid for Dublin-based Shire PLC, according to sources familiar with the situation.
Earlier Thursday Takeda Pharmaceutical revealed it made a roughly $60 billion takeover offer bid for Shire, which the drugmaker rejected.
Reuters then reported that Allergan was "also in competing negotiations" for Shire.
Allergan released a statement later in the morning which said the company "confirms that it is in the early stages of considering a possible offer for Shire plc ('Shire'). No offer has been made."
But it appears now it will not make an actual bid.
Allergan intraday chart
Allergan shares fell as much as 8.5 percent Thursday on the initial reports, but pared its losses to down 4 percent. Shire's stock is up 6 percent.
Update: Allergan later confirmed in a statement "it does not intend to make an offer for Shire."