March 12, 2009

Roche completes deal with Genentech

Swiss pharmaceutical company Roche Holding said Thursday it reached agreement to complete a purchase of Genentech, which began last year.

Roche said it had agreed to purchase all outstanding Genentech shares for $95 a share in a cash transaction. The total deal was announced as a $46.8 billion purchase.

Roche said California's Genentech would operate as an independent center. The company's unique culture would be maintained, the statement said.

The deal continues a consolidation trend in the industry. On Monday, Merck agreed to purchase Schering-Plough for $41 billion. In January, Pfizer, the world's largest pharmaceutical firm, agreed to buy Wyeth for $68 billion.

Genentech had set up a committee to review Roche's advancements. Committee Chairman Charles Sanders said the announced deal, is a fair offer for Genentech shareholders.

Franz Humer, chairman of the Roche Group said he was delighted that the intensive negotiations have led to a successful conclusion.

Roche said the acquisition would create the seventh largest U.S. pharmaceutical company in terms of market share with $17 billion in annual U.S. revenues. The company will employ 17,500 people in the United States, including a sales force of approximately 3,000, the statement said.