OK, readers, have at it. Roche's proposed acquisition of the 44% of Genentech that it doesn't already own is going to dominate the biopharma chatter for the foreseeable future. So give us your initial impressions, and we'll give you ours.
Why is now the right time for Roche to move, considering that it risks screwing up what is generally considered the most successful alliance in the history of the industry? Certainly Roche probably feels like the price is right--and that it mightn't ever get righter. The dominant theme elsewhere in the media will very likely be about Roche bioteching itself with Genentech's capabilities; you might also be reminded of AZ's own increasingly precarious experience doing the same with MedImmune.
But let us suggest that this deal, for all the talk about innovation, in the end has more in common with Big Pharma megamergers--cost cutting, savings, gaining access to the US market and potentially Roche better positioning itself for the twin futures of personalized medicine and follow-on biologics.
We also realize that the price is likely to change, if today's early reaction from the market is any indication. But Roche has been there before with Ventana and it can leverage that experience. This isn't a done deal, but Roche is likely to eventually prevail.
Watch this space and our sister publications "The Pink Sheet" DAILY and "The Pink Sheet" for ongoing coverage.
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