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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.

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

Tarceva Reaches Phase III Primary Endpoint

A press release yesterday from Genentech (DNA) reports that its drug Tarceva (erlotinib) reached its primary endpoint in a Phase III global clinical trial.  Tarceva is used to treat non-small cell lung cancer (NSCLC) and functions by interrupting the tyrosine kinase activity of epidermal growth factor receptor (EGFR).

The study demonstrated that treatment with Tarceva immediately following platinum-based chemotherapy increased the period of time without further disease progression in patients suffering from NSCLC.  

Tarceva was initially discovered by OSI Pharmaceuticals (OSI) and is the only EGFR inhibitor that that has been proven to increase survival rates in advanced NSCLC.  The drug is now marketed through a partnership between OSI and Genentech.

November 7, 2008 Posted by | Biotech | , , , , , , | Leave a comment