Serono in takeover talks with Novartis, GlaxoSmithKline, Sanofi-Aventis and Pfizer

Serono was forced to make an announcement yesterday that the company had hired investment bank Goldman Sachs to explore possible “strategic alternatives” for Europe’s largest biotechnology company, after the Wall Street Journal revealed several major rivals have been in talks over a possible $15 billion takeover.

“The company confirms Goldman Sachs has been retained to explore various strategic alternatives for the company. There can be no assurances that any transaction will be consummated,” Serono said in a statement.

The Wall Street Journal said that Novartis, GlaxoSmithKline, Sanofi-Aventis and Pfizer have all been in contact with the Swiss pharmaceuticals giant, adding that other ??? notably US ??? firms had been left off the list.

Serono achieved sales of $2.5 billion last year, its main drugs focus is on treatments for infertility and multiple sclerosis as well as drugs for breast and prostate cancers.

The company’s main drug, Rebif, currently marketed for multiple sclerosis treatment, generated $316 million in revenue in the third quarter of 2005 and is predicted will capture 30 per cent of the $2 billion US market by 2006.

Though major drugs companies were touted as possible buyers for the firm is expected that a merger with smaller companies or acquisitions by Serono is more likely due to antitrust legislation.

The company began life in 1906 in Rome when it was set up to extract proteins from eggs. It moved to Switzerland in 1977 when it shifted its pharmaceuticals focus to fertility treatments.

Shares rose on the speculation yesterday and were up eight per cent to a 20-month high in Zurich.

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