Roche ÔÇô Genentech merger finally agreed

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} The pharmaceutical sector continues to consolidate with the news today that Swiss-owned Roche is to acquire 100 percent ownership of US biotechnology company Genentech, best known for its cancer drugs.   Roche has been the majority owner of Genentech since 1990, with its stake before this deal standing at 55.9 percent. This agreement brings to an end a period of eight months of negotiations.   Roche launched its proposal at $89 a share last July, but the independent Genentech board considered it too low. Last month Roche appealed directly to Genentech shareholders with a tender offer of $86.50 per share which also fell on stony ground.   Agreement has now been reached, however, at $95 a share, in a deal worth $46.8 billion. ÔÇ£We are very pleased that we have reached an agreement with Genentech and secured a positive recommendation from the special committee,ÔÇØ said Roche chairman Franz Humer in a statement.   Charles Sanders, chairman of the special Genentech board committee also welcomed the agreement. ÔÇ£We believe this is a fair offer for Genentech shareholders and the committee is pleased to come to a successful conclusion of this process,ÔÇØ he said.   The combined group will generate around $17 billion in annual revenues. Roche expects the merger to generate annual pre-tax cost savings between $750 million and $850 million, largely by eliminating duplication.   Earlier this week, Merck announced that it was to buy rival Schering-Plough in a $41.1 billion deal, creating one of the world's biggest pharmaceutical companies. The worldÔÇÖs largest drugs company Pfizer acquired rival Wyeth in January in a deal worth $68 billion, the largest merger announced on Wall Street since the credit crunch.   *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *