Genentech Rejects Roche Proposal

August 14, 2008

The American biotech giant Genentech, Inc. has rejected an offer by the Swiss drug-maker Roche to acquire the 44% of Genentech it does not already own, but said it would be willing to consider a higher bid.

The American biotech giant Genentech, Inc. (South San Francisco, CA) has rejected an offer by the Swiss drug-maker Roche (Basel, Switzerland) to acquire the 44% of Genentech it does not already own, but said it would be willing to consider a higher bid.

Genentech said Roche’s offer of $89 a share “substantially undervalues the company” and that it would consider an offer that “reflects the significant benefits that would accrue to Roche as a result of full ownership.”

Last month, Roche had made an offer to acquire all of the outstanding shares of Genentech stock not owned by Roche at a price of $89 in cash per share. Genentech had formed a special committee to review the proposal.

Genentech release

For more information on the Roche offer, see BioPharm’s previous news coverage.