US pharmaceutical and health product giant Johnson and Johnson will take over Swiss lung medicine maker Actelion for 30 billion dollars, both companies announced Thursday.
Shares of the Swiss biotechnology firm shot up by more than 20 per cent to 273.60 Swiss francs (273 dollars) following the announcement.
Johnson and Johnson is offering 280 dollars per share to Actelion's shareholders.
Actelion's research and development activities are set to be spun out into a separate new company that will be led by current Actelion chief executive Jean-Paul Clozel.
Clozel, his wife Martine Clozel and a group of scientists from Swiss pharmaceutical company Roche founded Actelion two decades ago.
Their breakthrough product was Tracleer, which is used to treat high blood pressure in the pulmonary system.
Johnson and Johnson hopes to close the deal by the middle of the year, pending regulatory approval as well as the acquisition of at least 67 per cent of Actelion's shares.
Actelion employs 2,500 staff. It generated 1.8 billion Swiss francs of revenues in the first three quarters of last year.
Johnson and Johnson has 127,000 people on its payroll. Its revenues amounted to 71.9 billion dollars last year.