GlaxoSmithKline and Bristol-Myers Squibb Co have held preliminary discussions about the possibility of a merging to create the world's largest drugs firm, the New York Timesreported, citing executives close to the talks.
So far, the negotiations have been exploratory only, considering whether a GlaxoSmithKline purchase of Bristol-Myers would work rather than the details of how to execute it, the executives said.
Both companies refused to comment on the report.
Comments last week by Mr Jean-Pierre Garnier, GlaxoSmithKline's chief executive, heightened speculation that the companies were contemplating a deal. When an analyst asked him about possible acquisitions, Mr Garnier said if he found a good deal, he would not pass it up.
Two weeks ago, Mr John Coombe, GlaxoSmithKline's chief financial officer, told analysts that Bristol-Myers was "on our radar screen."