Roche raises offer for US diagnostics company

Source: Healthcare Exec

Date :22/01/2008 10:12:59

The Swiss pharmaceuticals group raises offer for Ventana Medical Systems despite the turmoil in the financial markets over fear of a US recession.

Roche raised its bid from $75 to $89.50 a share on Monday, valuing Arizona-based Ventana at $3.4 billion, or $400 million more than its repeatedly spurned initial offer.

The improved price represents a 4.9 per cent premium to Ventana’s closing price last Friday and a 19.3 per cent boost compared with Roche’s initial offer of last June.

Analysts had set a minimum $90 price a share tag on the company which makes sophisticated diagnostics equipments.

Ventana acqusition

Roche said in a statement that the acquisition of Ventana would “allow Roche to broaden its diagnostic offerings and complement its world leadership in both in-vitro diagnostic systems and oncology therapies.”

“Our combined company will be uniquely positioned to further expand Ventana’s business globally and together develop more cost-efficient, differentiated and targeted medicines,” commented Franz B. Humer(pictured), Chairman and CEO of Roche.

Christopher Gleeson, Ventana’s President and Chief Executive Officer, will continue as CEO of Ventana’s business following completion of the transaction and become a member of the Roche Diagnostics Executive Committee.

“After a full evaluation of its strategic alternatives and thoughtful consideration, as well as consultation with our outside financial and legal advisors, our Board believes that the transaction with Roche at $89.50 per share is in the best interests of our shareholders, and we recommend that our shareholders tender into this revised offer,” he said.

Ventana will remain based in Tucson, Arizona and its employees will become part of the combined company.

January 22, 2008