Novartis pulls out of race for Swiss biotech firm

Novartis has decided against making a takeover bid for Swiss vaccine maker Berna Biotech.

In a statement, the company said that it decided not to approach Berna Biotech after completing “due diligence and an assessment of the potential benefits and risks of an acquisition”.

The decision allows Dutch biotech firm Crucell to proceed with its bid for the firm. Crucell had made a ?255 million bid for the company, and will ask its shareholders whether to proceed at a meeting on Tuesday afternoon. Berna will ask its shareholders to approve the merger at a meeting on Wednesday.

The firm’s original offer proposed 15.50 Swiss francs for Berna Biotech shares, but after Novartis announced its interest in the company the stock market price rose to 15.65 Swiss francs ? suggesting that investors expected Novartis to offer better terms. However, the shares fell back to 14.5 Swiss francs on the beginning of trading on Tuesday.

Both firms develop Vaccines. Berna Biotech was founded in 1898 and offers flu, typhoid and hepititus vaccines. Crucell is currently developing vaccines for the West Nile virus, Ebola and malaria.

Meanwhile, Novartis has been rumoured to be interested in taking over biotech firm Sorono. An anonymous source told German newspaper Sonntags Zeitung that the company could make a bid in the next nine days.

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