Two sources with direct knowledge of the situation told Reuters on May 31 that Sun Pharmaceutical was prepared to pay $5-6 billion for Meda to boost its generics business in developed markets.
"Due to the recent speculation in the press and news media concerning Meda merging with another pharmaceutical company, we have decided to inform the market that there are currently no such discussions," Meda said in a statement.
Meda makes specialty products, over the counter drugs and branded generics, the same areas of focus as Sun Pharma.
The Swedish company had sales of about 13 billion crowns in 2012 and has a stock market value of roughly $4 billion.
Mumbai-based Sun is India's most valuable drug maker, with a market capitalisation of some $20 billion, and has made several acquisitions in recent years.