Swiss pharmaceutical maker Roche has offered $43.7 billion for the remaining shares of its U.S. biotech partner Genentech, seizing the opportunity offered by the weak U.S. dollar to grab a bigger share of earnings from such Genentech drugs as the blockbuster cancer treatment Avastin.
But analysts said Roche might need to pay more, and investors seemed to agree by bidding Genentechs share price above the offer. Roche Holdings already owns 55.9% of the South San Francisco, Calif.-based drugmaker. It offered $89 per share, 8.8% above Genentechs closing price Friday and 19% above the price a month ago.
Genentech shares climbed well above that offer in midday trading on Monday, jumping $10.58, or 12.9%, to $92.40 after rising to a 52-week high of $94.19 earlier in the sessiona bet that the bidding will go higher.
The California company took no position on the offer, but confirmed in a written statement that a special committee of its board would meet promptly to decide on a response. -- by the Associated Press