Roche to acquire Genentech for $46.8 billion

BASEL, Switzerland Roche will acquire American biotech company Genentech for $46.8 billion, the two companies announced Thursday.

The Swiss drug maker and Genentech reached the agreement nearly a year after Roche originally offered to buy the southern San Francisco, Calif.-based biotech giant, known for such drugs as the cancer medication Avastin (bevacizumab) and Rituxan (rituximab).

Under the agreement, Roche will pay $95 per share for the company, days after having offered $93 per share. It already owns almost 56% of Genentech, and originally offered to buy it in July.

Though Roche mounted a hostile takeover bid in January, the two companies said the agreement reached Thursday was “friendly.”

“Roche and Genentech saw the potential of a pharma-biotechnology partnership early on, and we are now in an enviable position to expand on the success of our long-standing relationship, which has been a source of immense value for patients, employees and shareholders of both companies,” Roche Group CEO Severin Schwan said. “We are excited about working with our colleagues at Genentech and look forward to partnering with them to develop a plan for the successful combination of the two companies.”

The deal marks the third time in less than two months that a large drug company has acquired another large drug company. At the end of January, Pfizer announced that it would acquire Wyeth, while Merck & Co. announced days ago that it would acquire Schering-Plough.