Schwarz Pharma eyed as potential acquisition

Schwarz Pharma, the German pharmaceutical company, could soon be the subject of acquisition bids as rumours of a number of possible suitors have seen the company’s share prices soar by more than a quarter in recent months.

One possible buyer named last week could be Merck KGaA, which recently failed in a bid to acquire Schering AG. Some investors think Merck KGaA could soon turn its attentions to Schwarz, which last week applied to the European Medicines Agency for a new indication of Neupro, an anti-Parkinson’s disease patch. At the same time, Merck cancelled the development of Sarizotan, another Parkinson’s disease drug.

On Wednesday, Schwarz shares hit record levels, according to the International Herald Tribune.

Marcus Konstanti, an analyst at Oppenheim Research in Cologne, told the newspaper: “Many companies would be interested in Schwarz, especially those that have little in the pipeline.”

“Schwarz Pharma is beginning to harvest the fruits of its labour. I would imagine they would want to realise the success themselves, but it’s all a question of price,” he added.

Last week, one banker told Reuters: “[Merck has] had disappointments with their research pipeline and Schwarz has a pipeline, so there’s an obvious connection to be made.”

However, any takeover would first have to gain the approval of the Schwarz family, which retains a majority shareholding in the company.

Schwarz is known for producing cardiovascular drugs, although it has expanded into other fields of treatment. Merck has a growing oncology portfolio and also offers cardiovascular drugs.

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