Medical device maker Stryker is not in talks to buy rival Boston Scientific, the company said in a regulatory filing on Wednesday, two days after a media report of a potential deal between the two surfaced.
Stryker's shares rose 7 percent to $174 in premarket trading after falling 9 percent in the last two days. Boston Scientific's shares fell 6.8 percent to $31.60. They closed up 7.4 percent on Monday.
There has been rapid consolidation across the health-care industry in recent years, but there has been a slower stream of larger deals in the medical device sector.
A potential deal between Stryker and Boston Scientific would create a combined company with a market value of more than $110 billion.
Wall Street analysts said any deal between the two companies would be transformational, but were skeptical about the rationale of the deal.
"Stryker is not in discussions with Boston Scientific Corporation regarding a potential acquisition," Stryker said.
The Wall Street Journal had reported on Monday that Stryker had made a takeover approach to Boston Scientific.
"The filing from Stryker states that the company is not in discussions with Boston Scientific. It does not deny that prior discussions took place," Jason Benowitz, senior portfolio manager at Roosevelt Investment Group said.
"Putting together a deal for Boston Scientific that creates value for Stryker shareholders would be a challenging high-wire act."
Roosevelt Investment does not own shares in either of the companies.