The lowdown: Roche and BMS are both pursuing biotech partners in their recent acquisition activity. In the largest bid for a biotech company to date, Roche proposed on 21 July 2008 to acquire the remaining publicly held shares in Genentech. Since 1990, Roche has owned a majority stake in the company and currently holds 55.9% of all outstanding shares. For over a decade, Roche has partnered with Genentech on a number of successful biologics including bevacizumab (Avastin), trastuzumab (Herceptin) and rituximab (MabThera/Rituxan). At the time of going to press, it was reported that a Genentech committee of independent directors unanimously concluded that the offer from Roche substantially undervalued the company. Analysts have predicted that Roche will increase the offer from $89 to ∼$107.50 a share.
On 31 July 2008, BMS proposed to buy ImClone Systems. Since 2001, the two companies have worked together to co-develop and co-commercialize the blockbuster anticancer biologic cetuximab (Erbitux). BMS currently holds ∼17% of the outstanding shares and would now like to acquire the remainder, initially offering $60 per share. On 4 August 2008, ImClone issued a statement announcing that its Board of Directors has formed a committee to study the offer, but also advised that their preliminary view is that the offer substantially undervalues the company. The Board is considering separating ImClone into its Erbitux and pipeline businesses to maximize the value of the company.
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