Drugmaker Baxalta in talks to buy Ariad - Bloomberg

(Adds Ariad's name as acquisition target; updates shares)

Aug 28 (Reuters) - Drugmaker Baxalta Inc is in talks to buy Ariad Pharmaceuticals Inc (Xetra: APS.DE - news) to boost its oncology business, Bloomberg reported, citing people familiar with the matter.

Talks continue with Ariad, a developer of leukemia and lung-cancer treatments, but there is no certainty a deal will be reached, Bloomberg said, citing the people. (http://bloom.bg/1hljzzC)

Ariad's shares jumped about 43 percent to a near two-year high of $10 in late afternoon trading. Baxalta (Berlin: 9BX.BE - news) 's shares fell 4 percent to $34.86.

In a report earlier on Friday, Bloomberg said Baxalta was working with bankers to buy an unidentified U.S (Other OTC: UBGXF - news) .-based hematology and oncology specialist valued at about $2 billion.

Baxalta is being pursued by drugmaker Shire Plc (Xetra: S7E.DE - news) , which has made a $30 billion bid for the company.

Baxalta, which was spun off from Baxter International Inc (NYSE: BAX - news) in July, declined to comment on the Bloomberg report.

Ariad, which had a market value of $1.32 billion as of Thursday's close, could not be immediately reached for comment. (Reporting by Rosmi Shaji in Bengaluru; Editing by Maju Samuel and Kirti Pandey)