Sale to
Advisor to Investor
Group in Genentech
March 2009
Undisclosed Investor Group in Genentech, Inc.
Sale to Roche Holding Ltd.
[Press Release 1]
[Press Release 2]
Sale to Roche Holding Ltd.
[Press Release 1]
[Press Release 2]
Initial Bid: July 2008Definitive Agreement: March 2009
Location: South San Francisco, CA
Chairman and Chief Executive Officer: Arthur Levinson
Genentech, which is widely considered the world’s oldest and most successful biotechnology company, discovers, develops, manufactures, and commercializes pharmaceutical products which include blockbuster drugs: Rituxan, which fights non-Hodgkin's lymphoma; Avastin, a treatment for colorectal, breast, and lung cancers; and Herceptin for breast cancer. After an eight month campaign by Roche to acquire the 44 percent of Genentech that it did not already own, Genentech agreed to a deal in which Roche pays $95 a share or $46.8 billion. The purchase price is a bit higher than the $93 Roche offered the previous week and higher than its $89 offer in July 2008. Acting as financial advisor to a group of investors in Genentech which had owned a substantial portion of stock not owned by Roche, Torreya provided the client with advice which helped in negotiations in response to the $89 bid which appeared to substantially undervalue their portfolio company. As part of the engagement, Torreya assessed the valuation of Genentech and performed a number of analyses which included defining market value using various valuation methodologies, examining future clinical development and financial consequences, and performing competitive analysis.
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