Who Else Might Johnson & Johnson Seek To Acquire With Actelion Now Out Of Its Crosshairs?

Johnson & Johnson JNJ has reportedly abandoned its buyout bid for Actelion Ltd ALIOF.

No Deal

Johnson & Johnson said that is was unable to come to terms on a deal that the company believes would have created adequate value for shareholders. Actelion is now reportedly involved in buyout talks with Sanofi SA (ADR) SNY.

However, just because Johnson & Johnson is abandoning its efforts for Actelion doesn’t mean it is changing strategies. Actelion is a major player in the relatively small pulmonary arterial hypertension (PAH) treatment market. The condition affects only about 100,000 patients in the United States and Europe.

Focusing In On Peers

Johnson & Johnson could now shift its attention to one of the other names in the space. Private biotech companies like MORPHOGEN-IX and Reviva Pharmaceuticals are working on treatments.

In the public market, Eiger Biopharmaceuticals Inc EIGR, Bellerophon Therapeutics Inc BLPH and Reata Pharmaceuticals Inc RETA are also active in the PAH market.

Johnson & Johnson may not have gotten a price it liked for Actelion, but any of the names mentioned above would be far cheaper alternatives. Actelion’s market cap is currently $22.3 billion. Eiger, Bellerophon and Reata have $94.4 million, $16.3 million and $455.1 million market caps, respectively.

The market seems to think Reata could be the best plan B for Johnson & Johnson. Shares are surging 7.6 percent on Wednesday.