(Reuters) – Novartis has backed away from its pursuit of Cytokinetics, the Wall Street Journal reported on Thursday, citing sources.
Shares of Cytokinetics slumped over 25% on the news in afternoon trade.
The Swiss pharmaceutical giant’s move came in the past day or two, the report said. Novartis or another suitor could re-emerge as Cytokinetics runs its sale process, it added.
On Monday, Reuters reported that Novartis is in the lead to acquire Cytokinetics, ahead of other bidders that include AstraZeneca and Johnson & Johnson.
Cytokinetics could also pursue another type of deal like a capital raise, the WSJ report said.
Both Novartis and Cytokinetics said they do not comment on market rumors and speculation.
Shares of Cytokinetics with a market capitalization of nearly $10 billion, as of Wednesday’s closing price, have more than doubled in value since Oct. 31, when reports of the company attracting takeover interests first surfaced.
(Reporting by Leroy Leo in Bengaluru; Editing by Shailesh Kuber)
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