Swedish drug company Meda has rebuffed an approach from generic drug maker Mylan which was looking to combine the two businesses.
Meda AB says talks between the two companies have stopped "without further actions." It did not provide any details as to why its board turned down the proposal.
Mylan previously hinted it was shopping around, saying in February that it expected to execute another "substantial transaction" this year. Mylan bought Agila Specialties last year for $1.6 billion.
Mylan said in a statement Friday that it does not comment on potential specific transactions. It has previously stated that it is considering a wide range of opportunities.
Meda's products are sold in more than 120 countries globally.
Shares of Mylan Inc. rose $3.52, or 7 percent, to $53.38 in morning trading.