A medical-device maker and a biotechnology company have each rejected buyout offers, saying the proposed purchase prices undervalue the companies.
Genentecha San Francisco-based biotech company specializing in cancer, cardiovascular and autoimmune therapiessaid in a news release that a review committee had deemed drugmaker Roches offer of nearly $44 billion, or $89 per share, to acquire full ownership of Genentech too low. The committee left the door open for another offer from Roche, which currently owns roughly 56% of Genentech. The drugmakers bid represented a 9% premium over Genentechs July 18 closing pricethe last trading day prior to the offers announcement.
In another deal, Irvine, Calif.-based devicemaker Endocare, which manufactures minimally invasive technology for tissue and tumor ablation, said an offer from urology-device maker HealthTronics to pay nearly $27 million in cash, or $2.28 per share, to take ownership of the company was inadequate and not in the best interest of Endocares stockholders. Endocare officials did not indicate whether they would be willing to consider a higher buyout offer. HealthTronics offer represented a 20% premium over Endocares most recent closing price prior to the takeover bid.