July 10, 2009
Bayer in talks to buy animal drugs business
Bayer, Germany's largest drugmaker, is in advanced takeover talks to expand its animal health unit and is likely to benefit from the ongoing overhaul of the US healthcare sector, according to German newspaper Financial Times Deutschland (FTD).
Bayer is vying with other companies for animal health businesses that are coming to market as a result of antitrust concerns about mergers among US drug firms, FTD said.
Chief Executive Werner Wenning earlier this year ruled out takeovers worth more than US$1.40 billion in 2009.
Signs of imminent divestments in the animal drugs industry are abundant. Merck & Co. said in June it was considering exiting its animal-health venture with Sanofi-Aventis or, as part of the planned merger with Schering-Plough, selling a similar unit at the takeover target.
In March, The Wall Street Journal cited a Pfizer executive as saying that the drug giant may have to shed some of its animal health business to gain antitrust clearance for its planned purchase of Wyeth.
