Roche

Roche's chance for $45B Genentech deal dwindles

John Carroll — Mon, 01 Dec 2008 10:38:07 -0500

Earlier this year, Roche's plans to raise $45 billion to acquire the outstanding shares to Genentech looked like a simple transaction in the world of high finance. One global economic crisis and a few months later, though, and the bankers close to the money say that the breeze at Roche's back has turned into a gale-force headwind.

Just days ago Roche reaffirmed that it is 100 percent ready to go ahead with its $43.7 billion bid for the 44 percent of Genentech it doesn't already own. Now banks aren't making many loans at all, and a jumbo loan like the one Roche would need to complete the buyout is looking like an increasingly tall order.

- read the report from the New York Times

Roche snaps up Memory Pharma for $50M

John Carroll — Tue, 25 Nov 2008 10:28:07 -0500

Roche is buying Memory Pharmaceuticals for $50 million. The pharma giant is paying 61 cents a share, a big premium over Memory's bottom-dwelling price of 15 cents a share.

For Roche, it's a chance to buy experimental therapies for Alzheimer's and schizophrenia. The two companies are also already partnered on a mid-stage drug program.

"The innovative work carried out by the scientists at Montvale, NJ-based Memory Pharmaceuticals will be fully integrated into Roche's research and development portfolio with the aim of providing new hope for patients and caregivers affected by devastating diseases such as Alzheimer's," said William Burns, chief executive of Roche Pharmaceuticals, in a statement.

- see the release
- check out the AP report

Roche boasts new data supporting Actemra, MabThera

John Carroll — Tue, 28 Oct 2008 10:50:35 -0400

Roche announced that a fifth Phase III rheumatoid arthritis study confirmed disease remission in patients treated with Actemra. Investigators reported that the therapy can halt structural damage to joints and improve physical function after one year of treatment.

"The outcome of this study is good news for RA patients as presently many either fail to achieve an adequate response or cannot tolerate therapies currently available," said William M. Burns, head of the Roche Pharma Division. "New treatment options are needed, particularly those that can target different pathways to bring relief and inhibit joint damage in patients suffering from RA."

Roche also says another study of MabThera demonstrated that rheumatoid arthritis patients responded well to treatments over a long period of time. The volunteers in the study had not responded well to tumor necrosis factor inhibitors, standard frontline therapies for RA.

"Prolonged treatment with MabThera clearly demonstrates an improvement in symptoms for patients with rheumatoid arthritis who do not respond adequately to TNF inhibitor therapy," said Professor Edward Keystone, Rheumatology Department at the University of Toronto, Canada.

- read the Roche release on Actemra
- check out the release on MabThera

ALSO: Galapagos NV says that Nanocort has demonstrated safety as well as a faster and more pronounced decrease in rheumatoid arthritis disease symptoms compared to reference medication in a Phase I/II study. Release

Genentech buyout still on Roche's to-do list

John Carroll — Tue, 21 Oct 2008 10:30:30 -0400

Roche hasn't lost its appetite for a proposed multibillion-dollar acquisition of Genentech. The pharma giant reaffirmed its bid for the biotech company as it outlined how its nine-month revenue figures had slipped two percent in Swiss francs.

The numbers help explain precisely why Roche remains an avid suitor. Cancer drugs are pumping money into the company. Avastin posted a 37 percent increase in revenue while Tarceva sales jumped 24 percent. MabThera/Rituxan (rituximab) for non-Hodgkin's lymphoma grew 16 percent to 4.3 billion francs, while sales of Herceptin (trastuzumab) were up 12 percent to 3.8 billion francs.

"I would like to reaffirm that we remain committed to the deal and we aim for a negotiated settlement," said CEO Severin Schwan (photo) about Roche's bid for the 44 percent stake in Genentech it doesn't already own. Schwan, though, was mum on the details.

- read the report from PharmaTimes

Genentech teams with Glycart on antibody program

John Carroll — Fri, 03 Oct 2008 10:00:25 -0400

Genentech is teaming up with Roche and its subsidiary GlycArt to develop GlycArt's GA101 molecule, a humanized anti-CD20 monoclonal antibody being developed as a treatment for hematological malignancies and other oncology related B-cell disorders like non-Hodgkin's lymphoma. The therapy is currently in Phase I/II clinical trials for CD-20 positive B-cell malignancies, such as non-Hodgkin's lymphoma and lymphocytic leukemia.

Genentech, Roche and GlycArt will share development costs and Genentech says it will record $105 million in R&D during the third quarter. Genentech gains U.S. commercialization rights in the deal.

"With its unique mode of action, we believe GA101 has the potential to extend the therapeutic benefit over current standards of care, including treatment for patients who do not respond to current therapies," says Pablo Umaña, CSO and co-founder of GlycArt.

- check out the Genentech release

ALSO: Eli Lilly is paying an unspecified upfront fee for the licensing rights to the cancer products it develops in collaboration with Deciphera. Researchers for the two companies will work together on four different areas using Deciphera's selective or multi-kinase targeted B-Raf inhibitors. Deciphera can earn up to $130 million in a range of sales, regulatory and development milestones. Eli Lilly release

Roche: Economic crisis won't stop Genentech bid

John Carroll — Thu, 02 Oct 2008 11:40:18 -0400

Roche is reassuring everyone that despite all the market turmoil that has occurred worldwide in recent weeks, it's still on track to raise the $43.7 billion it's bid to acquire all the outstanding shares of Genentech. And that's a major issue for the investment field, which sees that deal as a sign that the M&A business isn't completely dead--for now.

A spokesperson for Roche declined, though, to tell the Wall Street Journal if the company plans to bid more than the $89 per share already on the table. Genentech had rejected the offer as too low, but kept the door wide open to a richer bid. Investors, meanwhile, are feeling distinctly nervous about the whole affair. After bidding Genentech shares up to $98, the stock price slipped to $86.50 yesterday afternoon.

- read the report from the Wall Street Journal

ALSO: Biotechs in Europe, meanwhile, say they are feeling the heat. Report

Roche/Genentech - Biotech Market Share Report

Maureen Martino — Sun, 28 Sep 2008 20:52:25 -0400

Company: Roche/Genentech
2007 Sales: $15.4 billion
Market share: 20.6%
CAGR: 33.5%

What they have: Roche's biggest biologic blockbuster is Rituxan, a rheumatoid arthritis and non-Hodgkins lymphoma remedy that raked in $2.2 billion in sales in 2007. Other blockbusters include the breast cancer treatment Herceptin ($1.2 billion) and Avastin ($2.4 billion), which is indicated for colon or rectal cancer, non-small cell lung cancer and HER2 negative breast cancer. Anemia drug Neorecormon and Lucentis for wet AMD round out Roche and Genentech's five biggest biologics.

What to look for: Roche and Genentech have two new biologics in their late-stage pipeline. These are ocrelizumab, a monoclonal antibody for rheumatoid arthritis, and pertuzumab, another MAb for metastatic breast cancer. Additional indications for Avastin, Lucentis, Xolair are also in the works.

FDA delays Roche's blockbuster Actemra

John Carroll — Fri, 19 Sep 2008 10:20:25 -0400

The FDA is delaying approval of Roche's new rheumatoid arthritis drug Actemra, saying that it wants to see more information on the therapy. The news swiftly hit the share price of Chugai, Roche's partner on the drug. The FDA is looking for more information on manufacturing and the final label. But significantly the agency is not looking for more safety or efficacy data and is not asking for any time-consuming clinical trials.

Analysts widely expect Actemra to compete for blockbuster status with more than a billion dollars in annual revenue. The therapy is one of Roche's most promising new drugs. It blocks the IL-6 protein, which plays a role in inflammation. Despite the delay, analysts voiced their confidence of a pending approval.

- here's Roche's release on Actemra
- read the story from the Wall Street Journal

Memory Pharma slashes over half its workforce

John Carroll — Thu, 18 Sep 2008 11:26:09 -0400

Memory Pharmaceuticals is slashing more than half of its workforce as it restructures and focuses on clinical development. Half of those jobs will be cut immediately with the other half coming over the next six months.

In a release, Memory said that the realignment would leave the company able to support "ongoing and expected trials for its clinical-stage drug candidates." As part of the restructuring, the vice president of business development, Michael P. Smith, will take over as CFO.

"We are committed to the advancement of our pipeline, and this decision will ensure that we have the resources and human capital to execute our development strategies for our partnered and proprietary programs," stated CEO Vaughn M. Kailian. "We are focused on advancing our candidates through key clinical trials, such as our Phase II development program for MEM 3454 in cognitive impairment associated with schizophrenia and our Phase I program for MEM 63908, both of which are partnered with Roche. In addition, we look forward to initiating a Phase IIa trial for our lead PDE4 inhibitor, MEM 1414, commencing a Phase 1 program for MEM 68626, and continuing to collaborate with Amgen on the development of PDE10 inhibitors."

- read the Memory Pharmaceuticals release

ALSO: In a separate announcement, Memory Pharmaceuticals announced that it has amended its nicotinic alpha-7 receptor agonist agreement with Roche to expand the Phase II development program for R3487/MEM 3454 in cognitive impairment associated with schizophrenia. Roche will provide funding to Memory Pharmaceuticals, in advance, for all costs associated with the increase in enrollment and will accelerate a portion of the $17 million payment associated with the completion of the Phase II CIAS trial. Release

What's next for Genentech employees?

Maureen Martino — Tue, 09 Sep 2008 15:24:24 -0400

Imagine you're a Genentech worker in San Diego. Since Roche and Genentech first signed their partnership deal in the 1990s, you've enjoyed a relatively hands-off approach that's allowed independent research to thrive. In fact, Roche's affiliation with Genentech is regarded as the gold standard of what a Big Pharma's relationship with a small biotech should be. What's more, it's a set-up that's produced great results, such as Rituxan, Herceptin and Avastin--Roche's blockbusters.

But now things may change. Roche, of course, has made an offer to buy the remaining portion of Genentech that it doesn't already own. Analysts and employees worry that a takeover could negatively impact Genentech's internal culture, which has been credited for the company's success over the years. Genenech is scrambling to make sure its talented employees don't jump ship for fear that the status quo will change or that they'll be laid off. The biotech has announced plans to put $371 million earmarked for its stock option plan into retention bonuses as it negotiates with Roche over a buyout.

It's unlikely that Genentech's 500,000 square-foot Oceanside, Ca., plant will experience the kind of layoffs Roche's Palo Alto holdings will. The Oceanside plant is the home of 25 percent of Avastin production, which requires the kind of talent pool found in very few areas of the country, San Diego being one of them. Though sweeping layoffs are unlikely, Oceanside will undergo internal changes. A Genentech spokesperson said the company has yet to decide how many jobs would be cut if the deal does go through. But one thing's for sure: Roche must be careful as it navigates the takeover waters. One wrong move could cause Genentech employees to jump ship, which could render what's sure to be an expensive purchase not nearly as valuable as it has been in the past.

- read this Voice of San Diego article for more

Roche to move out of Palo Alto

Maureen Martino — Tue, 02 Sep 2008 15:15:34 -0400

Palo Alto may have to say goodbye to as many as 3,000 jobs. According to the San Francisco Business Times, Roche is planning to move its inflammation business from Palo Alto to Nutley, NJ and its virology ops--also at Palo Alto--to South San Francisco. The company will also move U.S. pharmaceutical commercial operations from its New Jersey site to South San Francisco.

"Roche is not disclosing the exact number of jobs that would shift between Palo Alto, South San Francisco and New Jersey. This much, however, is sure: South San Francisco will gain hundreds of jobs, New Jersey will lose hundreds and the Palo Alto operations that employed 3,000 people before Roche took control likely will be shuttered," notes the Business Times.

South San Francisco is the home of 8,000 Genentech employees. Roche, of course, is attempting to purchase one of the world's largest biotechs, though Genentech has rejected its offer as too low. Unfortunately for Palo Alto, Roche's reorganization plans will take place whether or not the Genentech deal goes through.

- read the article for more

Special Reports:
Roche - Top 15 R&D Budgets
Genentech - Big Biotech's Stock Report
Top Five Regions Targeting Biotech Companies - 2008

Genentech rejects Roche's $43.7B buyout bid

John Carroll — Wed, 13 Aug 2008 11:41:49 -0400

As expected, Genentech turned down Roche's $43.7 billion bid for all outstanding shares, but made it clear that a sweetened offer could win a nod. Roche's offer to pay an 8.8 percent premium on Genentech's share price--$89 per share--was a non-starter from Wall Street's perspective. Analysts say that it will take more than $100 a share for Roche to win over investors who hold the 46 percent of the stock Roche doesn't already own.

"The special committee is confident in the company's strong financial and clinical momentum and its uniquely productive research and development capabilities, which will continue to enhance shareholder value," said Dr. Charles A. Sanders, Chairman of the special committee appointed to look over Roche's offer.

Roche has to win over a majority of the non-Roche shareholders to complete the deal. Now that their appetite has been whetted, the real bidding can begin.

- check out the Genentech release
- read the AP report

Metabasis strikes $203M pact with Roche

John Carroll — Fri, 08 Aug 2008 10:23:07 -0400

San Diego-based Metabasis Therapeutics is getting a $10 million upfront injection from Roche to put its drug technology to work to find a new therapy for hepatitis C virus. In the event they find a drug candidate in the course of the two-year collaboration, Metabasis would be eligible for up to $193 million in milestones and Roche would have global commercialization rights.

"The HepDirect technology has shown significant promise in delivering the activated form of certain antiviral nucleosides to the liver and therefore has the potential to both enhance the antiviral activity of these nucleosides, as well as to lower the effective dose," says Dr. Mark Herion, the CSO at Metabasis. "A partnership with Roche enables Metabasis and Roche to combine their respective strengths in liver-targeting and hepatitis C research with the hope that this combination will lead to a drug candidate for HCV in the near future."

- read the release for more

Blockbuster RA drug wins FDA panel vote

John Carroll — Wed, 30 Jul 2008 11:22:15 -0400

In a near unanimous vote, an FDA expert committee has endorsed Roche's Actemra for approval for use against rheumatoid arthritis. The 10-1 vote moves the drug one more critical step closer to a likely FDA approval of a drug that is a serious contender for blockbuster status.

"Based on the strength of the data presented, and the positive recommendation by the committee, we are hopeful that the FDA will approve Actemra for the treatment of RA and provide a new option to patients who are not achieving adequate symptom relief with current therapies," said Kenneth Bahrt, M.D., Roche's global medical director, autoimmunity.

- read the press release

FDA staffers say Actemra works against RA

John Carroll — Mon, 28 Jul 2008 12:44:01 -0400

Shares of Chugai, which is controlled by Roche, jumped on the news that FDA staffers had sounded a distinctly positive note about Actemra for rheumatoid arthritis. Staff comments ahead of an expert committee review typically focus on the most negative aspects of the drug. But staffers say the closely watched therapy appeared to help people with RA and that side effects can be controlled by adjusting the dosage. The FDA's expert committee is scheduled to meet tomorrow to review the drug, one of the biggest new drug candidates we'll see this year.

"This should add to Roche's premium growth potential, and add another asset to the immunology franchise," Deutsche Bank said. A number of analysts have pegged Actemra as a sure-fire blockbuster, with Deutsche Bank among the most conservative with a $778 million estimate for 2012.

- read the report from the Wall Street Journal

Genentech considers Roche's offer

Maureen Martino — Fri, 25 Jul 2008 12:29:18 -0400

Genentech has made its first public move after Roche's $44 billion bid was announced on Tuesday. The biotech company says three of its independent directors have formed a committee to evaluate the offer, and Goldman Sachs has been brought in to advise the committee. Genentech said its Board would not go against the recommendations of the committee. Almost from the moment Roche made the bid analysts have been saying that $44 billion is not high enough.

Charles Sanders, the chairman of the special committee, said, "The special committee intends to proceed in a timely manner to review the Roche proposal, which was both unsolicited and unexpected. The outcome of this process has not been pre-determined, and there can be no assurance that the special committee will approve any transaction with Roche."

- see Genentech's release

Roche snaps up Arius platform for $189M

John Carroll — Wed, 23 Jul 2008 11:58:27 -0400

Another day, another Roche deal. The pharma giant announced this morning that it is paying $189 million to buy Canada's Arius Research, a move that will help beef up its portfolio of experimental therapies for cancer and inflammation. Shareholders controlling a majority of the company's shares have already signed off on the pact, which provides a 14.5 percent price premium over Tuesday's close. The deal delivers Arius' platform technology for selecting antibodies--a hot field in biotechnology--as well as a pipeline of early-stage antibody candidates.

The pact comes just one day after an announced deal to buy Mirus Bio for $125 million and two days after Roche's offer to pay $44 billion for all outstanding shares of Genentech. It's also another sign that Roche CEO Severin Schwan is wasting no time in building up the company around innovative therapies and technologies.

"Arius' promising platform and early pipeline of new antibody candidates represent an excellent fit with our own progressing research in the fields of cancer and immunology," said Lee Babiss, head of global research at Roche. Look for the deal to close in the third quarter.

- see Roche's release
- check out the AP report

ALSO: Roche's offer to acquire the outstanding shares of Genentech for close to $44 billion has stirred investors' interest in companies like Elan and Isis, which could present new acquisition targets. Report

Isotechnika shares plunge after Roche dumps rights

John Carroll — Tue, 22 Jul 2008 11:56:23 -0400

Shares of Canada's Isotechnika were in meltdown mode this morning after Roche announced that it was dropping its rights to license the developer's experimental drug for solid organ transplant. Its stock was down 64 percent in early trading. The Natinal Post reports that the company swiftly rushed to put the best possible spin on the announcement.

"While we are disappointed about Roche's different priorities, we feel that this represents the first time since 2002 that we can offer a more comprehensive licensing package including both transplant and autoimmune indications to a focused and strong global partner," said Isotechnika chairman and CEO Robert Foster.

Phase IIb data supported the safety and efficacy of voclosporin but some analysts had questioned if the data was strong enough to keep Roche in the game.

- check ou Isotechnika's release
- read the story from the National Post

Will Roche/Genentech team create industry model?

John Carroll — Tue, 22 Jul 2008 11:45:06 -0400

Roche's proposal to acquire all outstanding shares of Genentech is being viewed as a model marriage of a Big Pharma company focused on molecular diagnostics and a Big Biotech company designing new genetic therapies for an era of personalized medications.

The $43.7 billion offer is seen as a bold move by Roche's new CEO, Severin Schwan (photo). And Schwan is insisting that the offer has nothing to do with finding ways to bolster profits through cost-cutting maneuvers.

"Now is a good time to take Genentech private,'" Schwan told BusinessWeek in a telephone interview. "This transaction is about strengthening innovation; it is not about cost-cutting."

- read the article from BusinessWeek

Roche buys Mirus in $125M deal

John Carroll — Tue, 22 Jul 2008 11:43:25 -0400

Roche is continuing its buying spree with a deal to acquire Madison, WI-based Mirus Bio for $125 million. Mirus specializes in developing nucleic acid-based therapies, which includes RNAi technology for gene silencing.

"The technology brought by Mirus, together with additional technologies, will bring us closer to creating fully-enabled RNAi therapeutics," said Lee Babiss, global head of Roche pharma research.

- check out the release
- read the report from Hays Pharma