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Genentech Purchase?

The proposed deal that would involve Roche’s (RHHBY) outright purchase of Genentech (DNA) may not go through.  The rumored bid of $43.7B for the remaining 44% of Genentech that Roche does not presently own would require a $45B loan, which appears to be hung up at the moment.  

The lending squeeze is apparently the culprit, as reported by Reuters.  The deal itself makes sense, but the magnitude of the required loan is just not feasible in the present economic climate.

Nonetheless, the Genentech buyout remains on the table. Read this article over at Pharmalot for further analysis on the matter.

December 5, 2008 Posted by | Biotech, Deals, Pharma | , , , | Leave a comment