Chugai shares hit record on Roche takeover reports

Roche logo Image copyright AFP
Image caption Roche is the world's biggest maker of cancer drugs

Shares of Japan's Chugai Pharmaceutical have risen to a record high following reports Swiss drug giant Roche is looking to take control of the company.

Chugai's stock surged by more than 20% in Tokyo trading on Monday.

Roche, the world's biggest maker of cancer drugs, already owns about 60% of the Japanese firm and is said to be looking to buy the remainder for about $10bn (£6bn).

According to various news outlets, a deal could come as early as this week.

Chugai has denied talks with Roche, saying in a statement made over the weekend that it was "in no way in the process of reviewing any plan to become a wholly owned subsidiary of Roche."

Roche has owned a majority stake in Chugai, which develops oncology and arthritis drugs, for more than decade.

A successful acquisition of the Tokyo-based firm would add to the wave of global deal-making the pharmaceutical, biotech and medical products sector has seen this year.

According to Mergermarket, more than $260bn in deals were made in the first half of this year as drugmakers looked to reduce costs and find new sources of growth.

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