Roche to buy InterMune for $8.3B in cash

Roche (OTCQX:RHHBY, OTCPK:RHHBF) will pay $74/share for InterMune (NASDAQ:ITMN), a 38% premium to its Friday close and 63% higher than Aug. 12 when news of a potential sale emerged.

The deal gives Roche access to pirfenidone, which targets idiopathic pulmonary fibrosis, a disease that causes tissue deep in the lungs to become thick and scarred over time. Analysts predict pirfenidone will generate $1B in global sales by 2019.

Pirfenidone joins Roche’s stable of pulmonary treatments, including Pulmozyme for cystic fibrosis, Xolair for asthma, and in-development asthma drug lebrikizumab. Roche plans to speed pirfenidone’s U.S. start-up and help get insurance coverage for the medicine.

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Comments (7)
  • Joe Springer
    , contributor
    Comments (2630) | Send Message
    That ups the ante a little for the market, buyouts were going for about 5 X peaks sales after approval:



    And this one is about 8 X.
    24 Aug 2014, 05:49 PM Reply Like
  • Healer121
    , contributor
    Comments (39) | Send Message
    will there be another buyer who steps up?
    24 Aug 2014, 07:12 PM Reply Like
  • phillips
    , contributor
    Comments (10) | Send Message
    i was wondering if there will be another buyer too
    24 Aug 2014, 07:38 PM Reply Like
  • Joe McCann
    , contributor
    Comments (257) | Send Message
    There won't be a higher bidder on this one. Given all the news and comments that have emerged it is pretty clear Intermune ran a sales process on the company.


    Everyone got their look and had a chance to submit a bid I'm sure. Management did a fantastic job in 2014 managing this asset and getting great price for the company.
    25 Aug 2014, 02:32 PM Reply Like
  • jj1937
    , contributor
    Comments (5171) | Send Message
    Stocks are going to scream higher tomorrow!
    24 Aug 2014, 08:47 PM Reply Like
  • sheldond
    , contributor
    Comments (1425) | Send Message
    For projected sales in 2019.......8.3 billion.


    Makes some of my current stocks look like wise investments. Give me that premium.


    24 Aug 2014, 08:51 PM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (1396) | Send Message
    Was on my buy list.....was waiting for a slight pullback. That's what I get.
    24 Aug 2014, 09:46 PM Reply Like
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