South San Francisco, Calif.-based Genentech said its three independent directors, charged with evaluating Roche's proposal, could give "no assurance" of approving any deal with Roche. The statement, which a Genentech spokeswoman declined to discuss, countered assumptions that a Roche takeover was a foregone conclusion and that only the price remained to be settled.
Analysts across the board have said Roche's initial $89 per share bid is too low. Investors agree and pushed Genentech shares to $94.93 in after-hours trading Thursday night.
In the statement, Genentech asserted that under the companies' binding document signed in 1999, Genentech is not obligated to agree to a transaction. Known as the affiliation agreement, the document came into effect after Roche, after buying Genentech outright, floated more than 40% of Genentech shares on the public markets.
In the nine years hence, Roche has profited from rights of first refusal on all Genentech products and become Genentech's partner outside the U.S. for some of its most lucrative drugs, including Herceptin for breast cancer and Avastin for colon and lung cancer. -
Alex LashSee full story on
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