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Home Industry News Roche makes Genentech offer

Roche makes Genentech offer

23rd July 2008

Roche has made an offer to acquire the outstanding shares of Genentech for the price of $89 (44.7 pounds) in cash, equal to a total of $43.7 billion to current equity holders in the firm other than itself.

The company currently owns 55.9 per cent of all outstanding shares in the company after acquiring a majority stake in the firm in 1990.

Its offer of $89 per share represents a one-day premium to current Genentech shareholders of 8.8 per cent and a one-month premium of 19 per cent.

Roche said the transaction would deliver pre-tax synergies of $750-850 million every year, while Genentech’s unique research culture would be maintained, with its south San Francisco site operating as an independent research and early development centre.

Franz Humer, chairman of the board of Roche, said: “Our long and successful participation in Genentech has provided great benefits to both of our companies and shareholders.

“It has resulted in one of the biggest success stories in the healthcare industry.”

He added the transaction would create a unique opportunity to evolve the hub-and-spoke model at Roche into a structure that boosts the focus on innovation.

Earlier this week, Roche revealed first-half sales for the 2008 financial year of 22 billion Swiss francs (10.8 billion pounds).

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