Meda denies acquisition talks with Sun Pharma

Meda informs the market that there are no discussions concerning merger with another pharmaceutical company.

Swedish drug firm Meda AB, which has been reported to be in discussions with Sun Pharmaceutical Industries for a $5 billion stake sale, today denied that it was in talks with any potential buyer.

"Due to the recent speculation in the press and news media concerning Meda merging with another pharmaceutical company, we have decided to inform the market that there are currently no such discussions," Meda said in a statement.

Last week reports had said Mumbai-based Sun Pharma was in talks to buy the Swedish firm, which is strong in speciality products, over the counter drugs and branded generics, for about $5 billion.

"Meda's policy is not to comment on speculation and will not do so in the future. This announcement is an exception to our policy," it added.

While a spokesperson of Sun Pharma had earlier refused to comment on the reports, the Mumbai-based firm had also announced on BSE that reports of a possible deal were "speculation".

"We have absolutely no comment on market speculation. Please further note since we have large cash and cash equivalents, we are constantly linked to rumours of international acquisitions," the company had said in a filing to the BSE.

Shares of Sun Pharma were trading 2.08% higher at Rs 1,040 apiece on the BSE.