U.S. biotech firms Allergan Inc., Genzyme Corp. and Biogen Idec Inc. are the biggest gains on the S&P 500 Friday afternoon, following a Bloomberg report that France's largest drug company is planning a major U.S. acquistion.
Sanofi-Aventis SA is looking at a deal that could exceed $20-billion (U.S), according to Bloomberg reporters Albertina Torsoli and Jacqueline Simmons, who cited anonymous sources familiar with the situation.
U.S. medical companies with valuations of $10-billion or more include Biogen, the world's largest maker of multiple sclerosis treatments; Allergan, which sells Botox; Genzyme, which develops treatments for rare genetic disorders; and Celgene Corp., a cancer-drug manufacturer.
Shares of Biogen, Genzyme and Allergan were all up about 6 per cent Friday afternoon. Celgene's stock rose more than 2 per cent.
Sanofi-Aventis CEO Chris Viehbacher briefed his board on the transaction this week, and the process is in early stages, Bloomberg said.
The Paris-based company has been on a buying spree during the last couple of years to help replace revenue it is losing as its medicines face competition from lower-priced generic drugs.
Shares of Sanofi closed down more than 2 per cent on the Paris bourse Friday.