Roche buys US firm for $3.4 bn
Roche, the world’s biggest maker of cancer drugs, agreed to buy Ventana Medical Systems with an increased offer of $3.4 billion to gain tests that use human tissue to diagnose disease.
By Bloomberg |
GENEVA: Roche, the world’s biggest maker of cancer drugs, agreed to buy Ventana Medical Systems with an increased offer of $3.4 billion to gain tests that use human tissue to diagnose disease. Ventana investors will get $89.5 a share in cash, 19% more than a June 25 offer, Roche said. Ventana’s tests identify infectious diseases and cancer.
The Swiss drugmaker is seeking partnerships and purchases to strengthen the ties between its diagnostics and pharmaceutical units. Roche made three such acquisitions last year and extended a tender offer for outstanding shares of Ventana five times. Ventana rejected Roche’s $75-a-share offer as too low.
This offer is 4.9% higher than Ventana’s closing price on January 18 and 72% higher than Ventana’s closing price on June 22, the last trading day before Roche’s initial bid. The take-over was approved by the boards of both companies. Roche’s purchase will give it access to more diagnostic tests, including one to determine which patients are most likely to benefit from its breast-cancer drug Herceptin.
This may boost prescribing of the medicine, Roche’s second best-selling drug in 2006 with 3.9 billion Swiss francs ($3.5 billion) in sales. Roche raised its bid after gaining access to confidential information from Ventana, Roche CEO Franz Humer said in a conference call. In November, the two companies signed an agreement giving Roche access to “non-public information”. Ventana had rejected the original offer because it didn’t take into account new diagnostic tests the US company planned to introduce in 2008.
The Swiss drugmaker is seeking partnerships and purchases to strengthen the ties between its diagnostics and pharmaceutical units. Roche made three such acquisitions last year and extended a tender offer for outstanding shares of Ventana five times. Ventana rejected Roche’s $75-a-share offer as too low.
This offer is 4.9% higher than Ventana’s closing price on January 18 and 72% higher than Ventana’s closing price on June 22, the last trading day before Roche’s initial bid. The take-over was approved by the boards of both companies. Roche’s purchase will give it access to more diagnostic tests, including one to determine which patients are most likely to benefit from its breast-cancer drug Herceptin.
This may boost prescribing of the medicine, Roche’s second best-selling drug in 2006 with 3.9 billion Swiss francs ($3.5 billion) in sales. Roche raised its bid after gaining access to confidential information from Ventana, Roche CEO Franz Humer said in a conference call. In November, the two companies signed an agreement giving Roche access to “non-public information”. Ventana had rejected the original offer because it didn’t take into account new diagnostic tests the US company planned to introduce in 2008.
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