Roche Holding’s Acquisition of Genentech

  • B. Rajesh Kumar
Part of the Management for Professionals book series (MANAGPROF)


On March 12, 2009, Roche announced a $46.8 billion deal to buy South San Francisco-based Genentech. Genentech over the years were transformed from a startup to an entrepreneurial company which had developed Roche’s best-selling drugs like Avastin, Herceptin, and Rituxan. Roche wanted to absorb the biotech firm’s DNA into its corporate culture. Many of the late-stage clinical trials conducted by Roche involved Genentech products. It was expected that Roche’s main growth could come from expanded uses of Avastin. Unlike Pfizer and Merck, Roche had no interest in generic drugs or consumer products. Roche have become a leader in diagnostics. The acquisition was aimed to improve coordination on product development. With the deal, Roche obtained access to Genentech’s product pipeline beyond the year 2015 and gained access to Genentech’s cash pool of approximately $10 billion. The cumulative return for Roche during the entire acquisition period (initial hostile bid announcement to deal completion) was approximately −9.59%.


  1. Cage S (2009) Roche’s $46.8 billion Genentech deal outshines others. Accessed 10 June 2018
  2. Fierce Biotech (2006) Genentech strikes $919M deal to buy Tanox, Nov 9Google Scholar
  3. Fisher LM (2000) Genentech: survivor strutting its stuff. The New York Times, Oct 1Google Scholar
  4. Gen News Highlights (2014) Genentech acquires Seragon for up to $1.725B. Genetic Engineering & Biotechnology News Accessed 10 June 2018
  5. Genentech Media Release (2009) Roche completes acquisition of Genentech. Accessed 10 June 2018
  6. Knowledge@Wharton (2010) Anatomy of a merger: hostile deals become friendly in the end, Right. Accessed 2 June 2018
  7. Pollock A (2009) Roche agrees to buy Genentech for $46.8 billion. Accessed 10 June 2018
  8. Roche Investor Update (2008) Roche makes offer to acquire all outstanding shares of Genentech for US$89 per share in cash. Accessed 10 June 2018

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • B. Rajesh Kumar
    • 1
  1. 1.Institute of Management TechnologyDubaiUnited Arab Emirates

Personalised recommendations