Drug industry consolidation prospects got a shot in the arm on Thursday from talk that Shire (LON:SHP) may bid for US group Radius Health (NASDAQ: RDUS).
Shire is rumoured to have appointed advisers to work on a potential US$90 per share bid for Radius, which is developing therapeutics for patients with osteoporosis and other serious endocrine-mediated diseases.
A Shire spokesperson said: "We don't comment on rumour/speculation."
Proactive Investors also called Radius, but at the time of going to press no-one was available to comment.
Radius is thought to be among alternative acquisition candidates that Shire may target if it fails in its US$30bn bid for US rival Baxalta.
Baxalta rebuffed Shire's approach in August, saying it undervalued the company.
Other potential acquisition targets for Shire include Switzerland's Actelion and America's Ariad Pharmaceuticals, according to reports.
Shire is thought to be keen to do a deal not only to expand its drug portfolio but to prevent it becoming a bid target.
The Dublin-based company faced a £34bn takeover by AbbVie last year, but that foundered due to a clampdown on US companies moving abroad to reduce their tax bills.
In January, it signalled its intention to stay independent with a US$5.2bn deal to buy US speciality drug firm NPS Pharma.
Shares in Shire rose 54p to 4375p by the London close. Radius's stock was up US$3.66 or 6.75% at US$57.81