The Takeover Panel is stepping in to oversee an auction process after two revised offers in recent days from rivals Philip Morris and Carlyle upped the ante in the bidding war for the UK respiratory company.

Cash-rich private equity firms are eyeing opportunities in healthcare, especially among listed companies with sluggish share prices. The Carlyle Group could be getting a bargain if it seals a deal for the Chippenham-based inhalation specialist.

Shire's proposed $1.6 billion cash takeover of TKT answers investors' call for some deal-making action and pipeline diversification. But critics say Shire has paid over the odds for some risky programs in unfamiliar territory--rather like it did with BioChem.

After a fervent US expanstion capped by the surprise $150 million licensing of Indevus OAB treatment Sanctura, proprietary ambitions at the Croatian generics play Pliva may be stalling. Sanctura sales have disappointed, illustrating again the challenges of taking a specialist approach to primary care marketing. Pliva's best bet may be to switch growth engines to its promising biogenerics portfolio.