There's fresh evidence that the rumors of merger talks between Bristol-Myers Squibb and Irish drug developer Elan Pharmaceuticals were greatly exaggerated. Reuters reported yesterday afternoon that the two companies never got past initial strategic discussions last month.
"The talks were in the early stages, and never got down to price," a source familiar with the talks told Reuters.
Over the weekend fresh rumors that BMS was discussing buying a minority stake in Elan fueled a surge in the Irish company's stock price. But Reuters' source nixed that story line as well, saying that the talks never reached that stage.
Analysts were quick to zero in on a possible merger of the two companies, noting that Elan's work on an experimental Alzheimer's therapy with Wyeth may have drawn BMS's attention. But after news of BMS' departure hit, the analysts were left scratching their heads over where Elan could turn to now.
"The market has run through a fair number of partners by now -- we've had Pfizer, Roche, Bristol-Myers Squibb and Ljunbeck. There may not be that many left looking at it," Goodbody Stockbrokers analyst Ian Hunter told Reuters.
- read the story in Reuters