Doric Nimrod Air One Share Discussion Threads

[jenniferzz] 13/11/2009 00:14

The human rights brigade cry out that it is an infringement on the human rights of people for the authorities to hold DNA of innocent individuals. The DNA database is searched against outstanding crime scene stains such as offences of Rape, Robbery, Burglary and Murder. The question is what harm will ever come to those on the data base that are innocent if their profile is searched for such outstanding unsolved crimes? Whom amongst the nay sayers against the data base would want everything done if someone they cared about was the victim of a crime that could be solved wholly or in part by DNA ?

We have to register our cars, pay road tax with supporting documentation, comply with poll tax and electoral forms and complete our tax forms but because this is for revenue collection as opposed to where people are victims of a personal crime there it appears is not such an outcry. The revenue loaded compliance asks far more questions of an individual and is intrusive. When you think about it if your DNA was on the data base and you did not commit a serious crime what would be the problem for you, other than you don't like them having it ? if something happens to you or yours you might think differently.

[grupo guitarlumber] 06/11/2009 07:36

Horse genome unlocked by science
The genome of a domestic horse has been successfully sequenced by an international team of researchers.

The work, published in the journal Science, may shed light on how horses were domesticated.

It also reveals similarities between the horse and other placental mammals, such as bovids - the hoofed group including goats, bison and cattle.

The authors also found horses share much of their DNA with humans, which could have implications for medicine.

Horses suffer from more than 90 hereditary diseases that show similarities to those in humans.

"Horses and humans suffer from similar illnesses, so identifying the genetic culprits in horses promises to deepen our knowledge of disease in both organisms," said co-author Kerstin Lindblad-Toh, from the Broad Institute at the Massachusetts Institute of Technology (MIT) in Cambridge, US.

"The horse genome sequence is a key enabling resource toward this goal."

To generate a high-quality genome sequence, the researchers analysed DNA from an adult female thoroughbred named Twilight.

The horse's DNA was sequenced using capillary DNA sequencing technology (known as Sanger sequencing) to reveal a genome that is roughly 2.7 billion "letters", or nucleotides, in size.

In addition to sequencing the genome of a thoroughbred horse, the researchers also examined DNA from a variety of other horse breeds.

These included the American quarter horse, Andalusian, Arabian, Belgian draft horse, Hanoverian, Hakkaido, Icelandic horse, Norwegian fjord horse, and Standardbred breeds.

The team surveyed the extent of genetic variation both within and across breeds to create a catalogue of more than one million single-letter genetic differences in these breeds.

This is slightly larger than the genome of the domestic dog, and smaller than both the human and cow genomes.

So far, scientists have also sequenced the genomes of the platypus, mouse, rat, chimpanzee, rhesus macaque and, of course, human.

Horses were first domesticated 4,000 to 6,000 years ago. Over time, as machines have become the chief sources of agricultural and industrial muscle, those roles have shifted to sport and recreational activities.

Story from BBC NEWS:


Published: 2009/11/05 22:41:38 GMT

[ariane] 15/4/2009 09:19

Genentech Executives Start Leaving in Wake of Roche Acquisition
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By Rob Waters

April 15 (Bloomberg) -- Top leaders of Genentech Inc., the biotechnology company acquired by Roche Holding AG for $46.8 billion, will leave the company as part of personnel moves that put an executive of the Swiss drugmaker at the helm.

Arthur Levinson, 59, Genentech's chief executive officer since 1995, will become chairman of its board, steering efforts to combine the two companies, Roche said yesterday in a statement. Other key executives, including product development chief Susan Desmond-Hellmann, will leave by mid-year. Genentech employees become eligible to receive retention bonuses July 1 under a program approved last August.

Pascal Soriot, who runs commercial operations for Roche's drug division, will become Genentech's chief executive officer responsible for U.S.-based pharmaceutical operations. Roche officials also will take over from departing Genentech employees as chief financial and compliance officers. The changes mark the beginning of the company's transformation, said Stephen Burrill, a venture capitalist who invests in biotechnology companies.

"By and large, the Genentech leadership will move on, staying as long as their golden handcuffs require them to," Burrill said yesterday in a telephone interview. "The spirit of entrepreneurship won't be the same. People who were excited by entrepreneurship will find new homes and those that are comfortable with a large corporate structure will stay."

Pioneering Technique

Genentech was founded in 1976 by Herbert Boyer, a genetic engineering researcher at the University of California, San Francisco, and Robert Swanson, then a 29-year-old venture capitalist. Boyer and Stanford University scientist Stanley Cohen pioneered the technique that allows scientists to insert genes from one organism into another, laying the foundations for antibody-based drugs, bioengineered crops and gene therapy.

In the ensuing decades, South San Francisco, California- based Genentech made the first human protein by splicing genes into E. coli bacteria and later synthesized human insulin and human growth hormone. The company went public in 1980 in an initial offering that raised $35 million, and saw the share price rise to $88 from $35 in less than an hour.

Basel, Switzerland-based Roche, the world's largest drugmaker by market value, held a stake in South San Francisco, California-based Genentech for almost 20 years and controlled 56 percent of the biotechnology company's shares before starting its acquisition bid in July. Roche sought the takeover to boost income from top-selling cancer medicines such as Avastin. Roche completed the transaction on March 26.

'Sad Day'

"It is a sad day for me and many others," Myrtle Potter, former president of commercial operations at Genentech, said in an e-mail. Potter left the company in 2005.

Levinson will be nominated for a seat on Roche's board of directors at its next shareholder meeting in 2010, according to the Roche statement. He and Soriot will lead efforts to integrate the companies, Roche said.

Soriot joined Roche in 2006 and was previously a U.S.-based executive with Sanofi-Aventis SA, the French drugmaker, said Geoff Teeter, a Genentech spokesman. The management changes take effect May 1, Roche said in its statement.

Desmond-Hellman, 51, will advise the company after her departure as a member of the Genentech Scientific Resource Board. By staying until June 30, she will be eligible for a retention bonus of $4.59 million, Genentech said in an Aug. 21, 2008, filing with the U.S. Securities and Exchange Commission.

David A. Ebersman, the departing executive vice president and chief financial officer, could receive $2.73 million under the retention plan, according to the filing.

Desmond-Hellman's departure is "the beginning of senior executive departures and it's symbolic in that context," Burrill said. "She's a hot rock and will be very desired by a lot of other companies to take a leadership position."

To contact the reporter on this story: Rob Waters in San Francisco at [e-mail].

Last Updated: April 15, 2009 00:01 EDT

[grupo guitarlumber] 09/4/2009 08:49

Genentech Withdraws Psoriasis Drug Linked to Brain Infections
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By Marilyn Chase

April 9 (Bloomberg) -- Genentech Inc. began pulling its psoriasis treatment Raptiva from the U.S. market because of the drug's link to a rare, fatal brain disorder that has troubled at least four other medicines.

Genentech, the biotechnology company acquired last month by Swiss drugmaker Roche Holding AG, has told doctors not to write prescriptions for new patients as part of a phased withdrawal of Raptiva to be completed by June 8, the South San Francisco-based company said yesterday in a statement. About 2,000 U.S. patients may be taking Raptiva, Genentech said

The decision to withdraw the drug, which generated $108 million in U.S. sales for Genentech last year, came after three patients were diagnosed since October with the brain infection progressive multifocal leukoencephalopathy, two of whom died, said Tara Cooper, a Genentech spokeswoman. The risk of PML, which causes irreversible brain damage, outweighed Raptiva's benefits in controlling psoriasis, the company concluded.

"We said, and the Food and Drug Administration agreed, that Raptiva likely causes PML," said Ivor Caro, Genentech's senior medical director for dermatology, in a telephone interview. What tipped the balance was that Genentech could neither predict which patients were likely to develop PML, nor come up with a strategy to lessen that risk, he said.

"It was the clinical science perspective, not how much Raptiva was being sold," Caro said.

$125 Million Charge

The withdrawal will result in a one-time charge of about $125 million, the company said.

Raptiva, approved in 2003, was designed to suppress the abnormal immune response that triggers psoriasis, a painful, scaly rash that afflicts about 7.5 million Americans, according to the National Psoriasis Foundation. Sales never took off as other anti-inflammatory medicines, including Amgen Inc.'s Enbrel, Johnson & Johnson's Remicade and Abbott Laboratories Humira, entered the psoriasis market.

"Most people could see this coming," said Eric Schmidt, a biotechnology analyst with Cowen & Co. in New York in a telephone interview. " We knew this drug had a severe side- effect profile, and its efficacy isn't that good."

A fourth patient on Raptiva, who developed worsening neurologic symptoms, also died of unknown causes, the company said.

At least four other drugs have been linked to PML risk. They include Roche's Cellcept, used to prevent transplant rejections; Biogen Idec Inc. and Genentech's cancer drug Rituxan; Biogen's multiple sclerosis treatment Tysabri and Genzyme Corp .'s leukemia drug Campath.

No Other Withdrawals

Schmidt said he doesn't expect Raptiva's removal will lead to other product withdrawals.

"I see zero impact" he said. "Rituxan treats cancer. Tysabri, multiple sclerosis. The risk benefit for using Rituxan and Tysabri for their respective indications is very favorable. That's different from the profile for Raptiva, which Genentech decided is borderline."

PML occurs when a common germ, called JC virus, mutates, then evades the body's immune defenses and penetrates the brain. People with suppressed immune systems are most at risk for PML.

Biogen, based in Cambridge, Massachusetts, has been testing a malaria drug and a blood-cleansing therapy as treatments for the deadly brain infection.

Biogen's multiple sclerosis drug Tysabri was pulled from the market in 2005 after three PML cases were reported. It was reintroduced a year later when U.S. regulators said the medication's effectiveness, twice that of other MS drugs, outweighed its risks. Five cases of PML in Tysabri users have been reported since July.

Genentech's Caro said the company contemplates no similar withdrawal action for its Rituxan drug, which is used to treat non-Hodgkin's lymphoma.

To contact the reporter on this story: Marilyn Chase in San Francisco at [e-mail]

Last Updated: April 9, 2009 00:00 EDT

[waldron] 27/3/2009 14:58

FDA 'Unclear' If Genentech Drug Data Backs Expanded Approval (Genentech (Delisted 3/27/09)





By Jared A. Favole
Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The Food and Drug Administration said it's "unclear" whether positive responses seen in clinical trials involving Genentech Inc.'s (DNA) Avastin are sufficient to support accelerated approval of the drug to treat an aggressive type of brain cancer.

Genentech is seeking FDA approval to market Avastin, already approved to treat advanced breast, lung and colorectal cancer, for patients who suffer from an aggressive form of brain cancer in which the survival rate is 9 months to 12 months.

A panel of outside medical experts will discuss Avastin at an FDA sponsored meeting Tuesday. The panel will decide whether to recommend approval to expand the drug to treat brain cancer. The FDA generally follows the group's advice.

The FDA said it's "unclear weather the response rate and duration of response seen" in Genentech's application are sufficient, according to briefing documents posted on the agency's Web site.

-By Jared A. Favole, Dow Jones Newswires; 202.862.9207; [e-mail]

[waldron] 26/3/2009 06:49

Roche Completes Tender Offer For Genentech, Holds 93.2%





Edited Press Release

ZURICH -(Dow Jones)- Swiss drugmaker Roche Holding AG (ROG.VX) said Thursday it holds 93.2% of Genentech Inc (DNA) shares after completion of the tender offer, with 3% more guaranteed for delivery.

Roche's wholly-owned subsidiary, Roche Investments USA Inc., completed its tender offer for the publicly held shares of Genentech.

The offer expired at midnight, New York City time, at the end of Wednesday, March 25. A total of approximately 395.7 million shares of Genentech common stock were tendered representing 84.7% of Genentech's publicly held shares. Roche Investments USA Inc. has accepted for payment all shares validly tendered pursuant to its tender offer.

Together with the 55.7% of the outstanding shares already held by Roche, Roche now holds a total of approximately 982.9 million or 93.2% of the 1,054,555,886 Genentech shares outstanding. In addition, a further 3.0% of Genentech's outstanding shares were guaranteed to be delivered within the next three business days which, if added to the shares already received in the tender offer and Roche's existing stake, would represent approximately 96.2% of Genentech's total outstanding shares. Public shareholders who have tendered their shares will promptly receive $95.00 per share for their shares.

Pursuant to the merger agreement between Roche and Genentech, as soon as practicable Roche will cause a short-form merger under Delaware law in which Genentech will become a wholly-owned member of the Roche Group, and all remaining public shareholders will, subject to appraisal rights, receive $95.00 per share for their shares. Following the merger, Genentech's common stock will cease to be traded on the New York Stock Exchange.

Company Web Site:

-Zurich Bureau, Dow Jones Newswires; [phone]; [e-mail]

[waldron] 12/3/2009 08:03

Roche Chairman: Friendly Deal With Genentech Cuts Out Uncertainty





ZURICH -(Dow Jones)- Roche Holding AG (ROG.VX) Chairman Franz Humer said Thursday that he was delighted to have reached a friendly deal to take over Genentech Inc. (DNA), because this will eliminate uncertainties for shareholders and employees and speed up the integration process.

Roche said earlier Thursday it has reached a friendly deal with Genentech Inc. (DNA) to buy the 44% of the U.S. biotech company that it doesn't already own for around $46.8 billion.

Humer said he was confident that most, if not all, senior Genentech managers will stay with the combined company. He also expects Genentech's scientists and other staff to stay on.

Roche has the financing of the deal in place, he said, after the Basel-based drugmaker raised nearly $40 billion in bond markets in recent weeks.

Company Web Site:

-By Anita Greil, Dow Jones Newswires; [phone] ; [e-mail]

[waldron] 12/3/2009 07:08

UPDATE: Roche, Genentech Reach Friendly Deal, Worth $46.8 Billion





By Anita Greil
Of DOW JONES NEWSWIRES

ZURICH -(Dow Jones)- Swiss drugmaker Roche Holding AG (ROG.VX) said Thursday it has agreed with Genentech Inc. (DNA) to buy the 44% of the U.S. biotech company that it doesn't already own for around $46.8 billion.

Roche, based in Basel, said it expects the transaction to be accretive to earnings in the first year after closing.

The agreement ends a nearly eight month battle, in which Genentech repeatedly rejected Roche's offer.

Last Friday, Roche increased the offer price to $93 a share. The agreement reached now is for a slightly higher price of $95 a share.

"We believe this is a fair offer for Genentech shareholders," said Charles Sanders, chairman of a special committee of independent Genentech board members in a statement. "We look forward to working with Roche to complete the transaction as expeditiously as possible."

Company Web site: www.roche.com

-By Anita Greil, of Dow Jones Newswires; [phone]; [e-mail]

[waldron] 10/3/2009 10:18

Roche Doesn't Consider $112/Share Realistic For Genentech -Chairman





BASEL -(Dow Jones)- Roche Holding AG (ROG.VX) Chairman Franz Humer said Tuesday the Swiss drugmaker doesn't consider as realistic the $112 a share price for Genentech Inc. (DNA) proposed by directors of the biotechnology company as a condition to agree to a takeover.

Humer was speaking to shareholders at the company's annual general meeting in Basel, Switzerland.

On Friday, Roche increased its offer to buy the roughly 44% of U.S. biotechnology company Genentech Inc. (DNA) it doesn't already own, in a deal worth around $45.7 billion. The price reflects a price of $93 per share. On Monday, the Wall Street Journal reported that the two companies are close to agreeing a deal at a price of $95 per share.

The bid was again rejected as too low by Genentech's special committee of independent board members. But Humer said assumptions on which the committee bases its asking price are flawed.

"We feel the price proposed by the special committee, $112 per share, isn't based on realistic assumptions," Humer said.

Overly optimistic assumptions include, the committee's view about the potential impact from follow-on biologics, or generic copies of biotechnology drugs that lost patent protection. The committee also overestimates productivity gains and the potential increase in success rates in research and development, he added.

Roche also considers the committee's view on the market potential of cancer drug Avastin in new uses, and possibilities for price increases in the U.S. market as either inadequate or overly optimistic, Humer said.

Roche has raised close to $40 billion through various bond offerings to finance the deal. Given that the Swiss drugmaker commands around $7 billion in liquid funds already, financing of the deal looks secure, analysts say.

Company Web site: www.roche.com

-By Anita Greil, Dow Jones Newswires; [phone] ; [e-mail]

[waldron] 09/3/2009 13:00

Roche Seen Likely To Win Genentech With Latest Offer





By Anita Greil
Of DOW JONES NEWSWIRES

ZURICH -(Dow Jones)- Roche Holding AG (ROG.VX) is likely to succeed in fully taking over U.S. biotech company Genentech Inc. (DNA) after raising its offer price for the 44% of shares it doesn't already own in the U.S. biotechnology company, analysts said Monday.

Seeking to conclude an eight-months battle to gain full control of Genentech, Roche on Friday increased its bid 7.5% to $93 a share and extended its tender offer to shareholders until March 20. The new offer values the deal at $45.7 billion.

"The raised offer significantly increases the likelihood of a successful tender, while still preserving the assertiveness of the transaction for Roche," said David Kaegi, pharmaceutical analyst in Zurich with private bank Sarasin, who has a buy rating on the stock.

Roche shares benefited from the market's newly-found belief in the takeover's success. At 1215 GMT, Roche shares were up CHF3.20, or 2.5%, at CHF132, while the Swiss market overall was lower.

Genentech's Special Committee of independent directors again rejected Roche's offer as too low, but the chances that Roche will succeed have vastly increased with the new offer, many analysts said.

"Roche has held a series of meetings with shareholders of Genentech in New York last week and the revised offer price may reflect the feedback gathered during these meetings," said Karl-Heinz Koch, pharmaceutical analyst in Zurich with independent broker Helvea, who has a buy rating on the stock.

Roche, based in Basel, Switzerland, has raised around $36 billion at a cost of less than 5% through a series of bond issues in major currencies. Together with the roughly $7 billion in liquid funds that the drugmaker has on its balance sheet, it commands more than $43 billion in cash to finance the transaction, Koch estimates.

Roche has said it would proceed with the offer only if more than half of the minority shareholders tender their shares by the new deadline.

"The higher offering now increases the downside risk for Genentech shareholders should the Avastin adjuvant colorectal data be negative," Sarasin's Kaegi said.

An interim analysis of the data is expected next month. If the study proves that Avastin, a top-selling cancer drug, works in early stages of cancer, the drug's potential sales would skyrocket, analysts say. A successful outcome of the study would also support the valuation of Genentech, though Roche has said the benefit of controlling Genentech aren't hinging on a successful outcome of the study.

Company Web Site:

-By Anita Greil, Dow Jones Newswires; [phone] ; [e-mail]

[grupo guitarlumber] 03/3/2009 15:05

Roche Gains as Genentech Talk Eases Price Concerns (Update1)
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By Dermot Doherty

March 3 (Bloomberg) -- Roche Holding AG rose the most in almost three months in Zurich trading after analysts said a presentation by Genentech Inc. didn't turn up new evidence that could push the Swiss drugmaker to overpay for its partner.

Roche climbed as much as 7.2 Swiss francs, or 5.8 percent, to 131.3 francs, the biggest gain since Dec. 8. Genentech shares fell 4.6 percent yesterday.

Genentech executives, trying to show Roche should raise its $42.1 billion bid, said yesterday the biotechnology company may begin selling 15 new drugs by 2015 and introduce 24 new uses for existing medicines, including the cancer drug Avastin.

"There were no surprises in Genentech's presentation," said Carri Duncan, an analyst at Sal. Oppenheim in Zurich. "They had the platform and I don't think they impressed."

Roche shares dropped 6.7 percent yesterday on concern about Genentech's presentation.

Duncan and investors say the Swiss drugmaker will need to raise its bid. A shareholder survey by Citigroup Inc. last month found that 92 percent of Genentech holders won't tender their shares at the current price of $86.50. The concern centers around how high Roche may need to go.

"What Roche investors are worried about is if they overpay," said Duncan, who expects a deal at $90 a share or above. Genentech estimates the company is worth at least $112.

Roche last year extended a tender for a fifth time and increased its offer by 19 percent to buy U.S. diagnostics company Ventana Medical Systems Inc. for $3.4 billion.

To contact the reporter on this story: Dermot Doherty in Geneva at [e-mail]

Last Updated: March 3, 2009 07:26 EST

[waldron] 24/2/2009 06:46

source:ft

Genentech directors push to reject Roche
By Andrew Jack in London

Published: February 24 2009 02:00 | Last updated: February 24 2009 02:00

The independent directors of Genentech, the US biotech group, last night formally advised shareholders to reject the $42bn buy-out of minorities by Roche of Switzerland, its majority owner, launched this month.

In a letter to Genentech's shareholders, a "special committee" of three of its directors argued that Roche's original bid of $89 a share proposed to the board last July "substantially undervalues" the company, and that its revised hostile bid appealing directly to shareholders at $86.50 a share was "inadequate".

They suggested that the two bids failed to reflect the valuation contained in Genentech's 2008 financial plan, its highly regarded scientists, robust pipeline and its long-standing commercial success.

They pointed to supported evidence suggesting the price was inadequate from their adviser, Goldman Sachs, the investment bank.

The directors, Charles Sanders, Herbert Boyer and Debra Reed, appeared to leave the door open to a higher bid, writing: "We remain committed to considering a proposal that recognises the full value of Genentech and reflects the significant benefits that Roche would enjoy as a result of full ownership."

However, in an indication of growing tensions with Roche, the directors also stressed that Genentech was under no obligation to extend the exclusive option agreed in 1999 with its Swiss parent to grant it access to the company's pipeline of future products once it expires in 2015.

In more detailed accompanying filings to the US Securities and Exchange Commission yesterday, they also highlighted a refusal by Roche and Greenhill, its advisers, to come back with a higher offer beyond the original $89-a-share bid unless they first proposed an indicative price.

Their comments reflect a reply to Roche's formal offer document, which implicitly criticised the independent directors and their advisers for failing to respond more swiftly to the offer or suggest an alternative.

The Genentech directors state that in late 2007 Franz Humer, Roche's chairman, approached Genentech to increase its stake and change anti-dilution rights, and warned in 2008 - ahead of the bid - that "there would be consequences" when the independent directors refused to agree these changes.

They say Mr Humer subsequently agreed there would need to be efforts to retain top-level staff following the takeover, and said he believed a deal would be completed within a year of his original offer in July 2008.

In a sign of a potentially long-drawn out fight, the independent directors say they have retained Goldman Sachs for fees which could ultimately reach $55m.

[waldron] 04/2/2009 07:44

Roche CEO: Still Very Committed To Genentech Takeover





ZURICH -(Dow Jones)- Roche Holding AG (ROG.VX) is still very committed to its intention of taking over the minority shareholdings of Genentech Inc. (DNA), Chief Executive Severin Schwan said Wednesday.

Speaking in an interview with financial news channel CNBC Europe, Schwan rejected the notion that the new, lowered bid for Genentech was a "face-saving retreat."

Friday Roche launched a hostile takeover bid for Genentech at $86.50 per share, after negotiations with a Genentech special committee failed to lead to a merger.

Roche currently owns 55.8% of the Genentech outstanding shares.

-By Hans Schoemaker, Dow Jones Newswires; [phone]; [e-mail]

[waldron] 03/2/2009 08:11

UPDATE: Genentech, Roche Say Tarceva, Avastin Combo Works





By Anita Greil

Of DOW JONES NEWSWIRES

ZURICH -(Dow Jones)- Genentech Inc. (DNA) and Roche Holding AG (ROG.VX) said a study examining the potential benefits of combining cancer drugs Tarceva and Avastin was stopped early because it became clear that people with lung cancer who received the treatment lived longer without their cancer getting worse, compared to those who received Avastin alone.

Genentech, based in South San Francisco, CA, and Roche, based in Basel, said this was the second late-stage study that demonstrated the benefits of daily pill Tarceva as an initial maintenance therapy, following inital treatment with Avastin. Genentech sells both drugs in the U.S., while Roche has the right to sell them in other markets. Avastin is one of the companies' fastest-growing products.

Shares of Genentech and OSI Pharmaceuticals Inc . (OSIP), which are selling Tarceva in the U.S. rose in after-hours trading Monday after Genentech gave details of the findings. Roche shares closed at CHF163.50 on Monday.

The Swiss drugmaker plans to take full control of Genentech, which developed many of the successful cancer drugs that are driving Roche's growth.

Last Friday, Roche launched a hostile bid to buy the roughly 44% of the U.S. biotech company that it doesn't already own, after its earlier friendly offer was rejected.

Company Web Site:

-By Anita Greil, Dow Jones Newswires; [phone]; [e-mail]

[waldron] 01/2/2009 20:47

Why the Drop in Roche's Genentech Bid?
by: Mike Huckman February 01, 2009 | about stocks: DNA / RHHBY.PK
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Become a Contributor Submit an Article Font Size: PrintEmail TweetThis Genentech (DNA) shares dropped three percent Friday or $2.85 to $81.24 after Roche showed some chutzpah and lowered its bid for DNA. Recently, there'd been reports that the Swiss drugmaker, which already has a majority stake in the California biotech, was going to raise the offer to around $94. So, it was surprising and, some might say, shocking when Roche (RHHBY.PK) announced Friday morning that it was willing to pay $86.50 a share instead of the original $89.

Late Friday, Genentech put out a press release urging shareholders to tell Roche to take a hike. Dr. Charles Sanders, the chairman of the special committee of the DNA Board of Directors that's been set up to deal with Roche, called Roche's move "unilateral and opportunistic...in an attempt to take advantage of current market conditions."

But in a research note to clients, Bill Tanner at Leerink Swann said investors should take the money. "We believe the shares are fundamentally overvalued." Leerink Swann may trade in DNA.

Other analysts and investors believe Genentech's stock could rally this spring when test results are expected on the cancer drug Avastin as an add-on treatment for colon cancer. If the data are good and the drug gets approved for that use, it could substantially increase Avastin sales. Genentech recently announced that the numbers could be available in April. I'm guessing it'll unveil the so-called topline data at that time and save the details to make a huge splash at this year's American Society of Clinical Oncology meeting.

Geoffrey Meacham at JPMorgan says if that Avastin study goes well that Genentech shares could be worth more than a hundred bucks. "We do not expect the majority of shareholders to participate in this tender offer, where most of the core holders have held the stock for several years and are believers in the adjuvant (add-on Avastin colon cancer treatment) opportunity and the long-term value of the company." JPM has done and wants to do more investment banking for DNA and it makes a market in DNA options, which were apparently active Friday.

And another Geoffrey...Geoffrey Porges at Sanford C. Bernstein writes, "This is clearly another high risk hardball negotiating strategy by Roche. We believe it has a significant risk of failing to impress sufficient Genentech independent shareholders to close the deal." A part of Bernstein owns at least one percent of DNA.

[grupo guitarlumber] 30/1/2009 06:51

Roche Plans Direct Cash Offer Of USD86.50/Genentech Share





Edited Press Release

ZURICH -(Dow Jones)- Swiss pharmaceutical company Roche AG (ROG.VX) said Friday it intends to commence a cash tender offer for all outstanding publicly-held shares of Genentech at $ 86.50 per share. Roche, which currently owns 55.8% of the Genentech outstanding shares, expects to commence the tender offer within approximately two weeks.

The offer replaces the public proposal made by Roche on July 21, 2008 to acquire all of the publicly-held shares of Genentech at a price of $ 89 per share in cash by means of a negotiated merger. After receiving Roche's original proposal, the Board of Directors of Genentech, with the full support of Roche, created a special committee comprised of independent directors to consider and respond to the Roche proposal. On August 13, 2008, the special committee announced its rejection of Roche's proposal. In light of the lack of progress towards an agreed transaction since then, Roche has now decided to make an offer directly to Genentech shareholders.

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[waldron] 23/1/2009 17:22

Roche Faces Big Decision On Genentech Bid As Key Data Loom





By Thomas Gryta
Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Roche Holding AG (RHHBY) has consistently reiterated its devotion to buying the 44% of Genentech Inc. (DNA) that it doesn't already own, but the potential early arrival of a key study means the company may have to decide its next step soon.

If the Swiss drugmaker waits for the data regarding Genentech's flagship cancer drug Avastin, possibly coming in mid-April, and the results are considered a success, Roche risks paying significantly more than the already rejected offer of $89 a share. If the study fails, it could pay less. Roche can also decide not to take the gamble, but it needs to move soon to cut a deal with Genentech and get financing amid tight credit markets.

"I honestly think it could be any day now," Robert Baird & Co. analyst Chris Raymond said, referring to his expectations for a higher bid.

If a deal is reached soon, Wall Street generally expects it to be higher than $95 a share. A successful study could drive Genentech's value above $100, excluding any premium from a Roche offer, while its failure may actually bring Roche to lower its rejected offer from July.

Shares of Genentech, recently at $83.94, have traded below the offer price since late September, after hitting a high of $99.14. The drop reflects doubts about Roche's ability to close the deal amid tight credit markets, rather than concerns related to the forthcoming study. Roche shares recently fell 1.22% to $36.30.

Neither Roche nor Genentech would comment on the acquisition offer.

Genentech's next few years will likely be driven by Avastin, which is approved to treat advanced breast, lung and colorectal cancer and had 2008 sales of $2.69 billion.

The drug's future trajectory will be determined by its potential use in the adjuvant setting - when it is administered after cancer is surgically removed.Currently, Avastin is only used on cancer that has spread beyond its original site. Its use as an earlier treatment could add billions of dollars in sales, and the so-called C-08 study will be the first view of the drug's adjuvant use in colorectal cancer.

The trial is being run by a third-party cooperative group and Genentech had expected the data to come in the middle of the year, but earlier this week disclosed it could be as early as mid-April.

Most Wall Street analysts see colorectal adjuvant usage adding at least $1 billion in annual sales. Lazard Capital Markets recently estimated that adjuvant usage in breast, lung and colorectal cancer could ultimately bring more than $9 billion in additional annual sales.

Genentech has acknowledged the importance of Avastin's adjuvant use to the drug's growth over the next three to five years, but also asserts that approval isn't essential.

"I think people get understandably focused or even obsessed by the adjuvant result," said Ian Clark, executive vice president of commercial operations, in an interview last week. "I'm confident that we can continue to grow the business even without a positive adjuvant study."


Back To The Wall

The shorter timeline for the data's release puts Roche in the position of either raising its bid before such monumental data, or waiting to see the results and riding the inevitable shift in the value of the Genentech.

"It's my view that both parties are incentivized to get this thing done before the data comes out," Raymond said.

Roche recently said that the deal is on track, despite the ongoing financial crisis, and that it always expected the process to take a year from the original bid, according to The Wall Street Journal.

But some believe that Roche always intended to close the deal before the announcement of the C-08 results, and now the timing shift has backed it into a corner.

Some speculate that Roche will make a bid before releasing 2008 financial results on Feb. 4.

Besides getting the approval of Genentech's independent board and from shareholders, Roche will have to line up financing amid the financial crisis.

The deal would be huge: The original $44 billion offer goes up $500 million for every dollar added to the original $89-per-share bid. Analysts expect a deal somewhere above $95 per share, and many are aiming closer to $105 a share.

The price to Roche is also higher as the U.S. dollar has strengthened against the Swiss Franc, adding 14% to the original bid in July, when Roche cited the weak dollar as a motivating factor for the deal.


Rolling The Dice

If Roche either can't get the deal done prior to the data, or it decides to take its chances, it is sure to provide a wild ride for Genentech shareholders.

"If data are positive and Roche has not closed the deal, we suspect the price of Genentech will become too expensive for Roche to finance," said Morgan Stanley analyst Steven Harr.

But success is not guaranteed, and negative data will likely have the opposite effect, possibly making Roche's previous $89-a-share offer look too expensive.

"I don't know where Roche would come out in valuing Genentech at that point, but definitely it would be below $89," said RBC Capital Markets analyst Jason Kantor, noting that the original offer won't necessarily be on the negotiating table after the C-08 data because the independent board already rejected it.

Any deal before the data release will likely include a large breakup fee or some other mechanism to avoid a renegotiation after the news comes out.

In the meantime, until the data, most on Wall Street don't expect major changes to Genentech's share price as most investors are well aware of the risks regarding the deal and the study.

"You are kind of crazy to own the stock if you don't think that the data is going to be positive," Kantor said.

-By Thomas Gryta, Dow Jones Newswires; 201-938-2053; [e-mail]

[ariane] 17/1/2009 11:47

J.P.Morgan: Analyse de Roche

16/01/2009 - 11:48 - (Bolsamania) - Roche

Genentech cautious 2009 Guidance should strengthen Roche's negotiation position – ALERT

Yesterday, Genentech provided 2009E earnings guidance significantly below consensus. This should reduce the scope for Genentech's board of Directors to push for a significantly higher bid from Roche than the $89 they have already rejected.

Importantly, the gap from guidance to consensus estimates can be attributed largely to well known headwinds that are already reflected in our current published Roche and Genentech estimates. In our view the shortfall of the guidance compared to consensus does not point to an unexpected deterioration of the Genentech operating performance, but rather to expectations by biotech investors that may have run ahead of themselves (to justify a request for a higher bid from Roche?). Reiterate Overweight rating for Roche.

Genentech reported 4Q'08 results broadly in line with consensus (if retention payment are stripped out) but provided a relatively cautious outlook for 2009, guiding towards a 2009 non-GAAP EPS range of $3.55-3.90, implying y-o-y EPS growth ranging from +4 to +14%.

2009 guidance is in line with our Genentech projections in our published Roche model (2009E: $3.58), but significantly below consensus of $3.92.

It appears that Genentech bulls may not have taken into account several known headwinds affecting Genentech's 2009E bottom line:
(1) lower Rituxan royalties from Roche,
(2) lower Herceptin collaborator sales to Roche,
(3) FX headwinds on the royalty line (rather than the tailwind seen in recent years),
(4) retention payments of $0.11 per share.

Importantly, those headwinds have no effect on our Roche estimates:
Rituxan royalty and Herceptin payments don't affect the Roche consolidated group figures whereas FX effects and retention payment are already reflected in our Roche estimates. (Note, Roche IFRS numbers do not add back either stock option expense or retention payments to earnings, in contrast, Genentech adds back stock options expenses to non-GAAP earnings, but deducts retention payments from non-GAAP estimates, due to their cash nature.)

Potential Raptiva withdrawal is the only new element that may negatively affect Genentech as well as Roche 2009E bottom line, with a potential negative EPS impact of $0.05 for Genentech or 0.3% on Roche EPS. We expect to learn in coming weeks to what extend this risk will materialise, as discussions with regulators about two cases of PML progress.