Shares in Sun Pharmaceutical Industries have fallen back on rumours it is in talks to buy Sweden's Meda in the region of $5 billion.

A number of media sources have reported a piece in the Wall Street Journal which claimed Sun is in talks to buy the Swedish drugmaker. The former has issued a statement to the Bombay Stock Exchange saying that we have absolutely no comment on market speculation. Please further note since we have large cash and cash equivalents, we are constantly linked to rumours of international acquisitions".

Nevertheless, the rumours persist that Sun has been in talks with banks to raise funds for a possible deal. It is seen by analysts as an acquisitive company, having bought US dermatology expert Dusa Pharmaceuticals in November last year and Takeda's generics business URL Pharma a month later. Some reports claim that Sun tried to buy eye care specialist Bausch + Lomb, acquired last week by Valeant for $8.70 billion.

In February, Sun decided not to buy Israel's Taro Pharmaceutical, in which it holds a 66% stake. That merger was a deal that first rose its head in 2007.

Indeed Valeant has been seen for a long time as a possible buyer for Meda, with which it has partnerships. However, last September, the latter spent $95 million to acquire the women's health business of Jazz Pharmaceuticals.