Genentech Dissatisfied with Roche Buyout Offer

The special committee of Genentech, formed to consider Roche's offer to buy all of Genentech's outstanding, shares expressed its dissatisfaction with the tender first made in July 2008.

The committee turned down Roche's US$43.7 billion bid, stating that the offer substantially undervalues the company, but added that they would consider a proposal that recognizes the true value of Genentech as well as the benefits that Roche would realize resulting from full ownership of the biotech pioneer.

Dr. Charles A. Sanders, chairman of the special committee, said, "The special committee is confident in the company's strong financial and clinical momentum and its uniquely productive R&D capabilities, which will continue to enhance shareholder value. In addition, we look forward to the company maintaining its successful relationship with Roche, regardless of ownership structure."

Roche, already the owner of nearly 56% of Genetech, is likely to move quickly to seal the deal. Analysts expect that Roche may end up paying around 20% premium over the initial offer of about $89 per share of Genentech.

Genentech is a leading biotechnology company that discovers, develops, manufactures, and commercializes medicines to treat patients with significant unmet medical needs. The company with over 100 projects in development is headquartered in South San Francisco, CA, USA, and had total operating revenues of $11.7 billion in 2007.

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