Everything's Coming Up Roches
Stephen Simpson, CFA
Stephen Simpson, CFA
Stronger First Quarter Sales Help Roche, But ASCO Probably Matters More
Stephen Simpson, CFA
Stephen Simpson, CFA
Poor Pipeline Productivity Has Left Roche More Vulnerable
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Jul. 19, 10:50 AM
- Prompted by moderating growth from traditional drug sales, large cap drug/biotech firms have their sights set on developers of cancer therapies, in particular immunotherapies, to boost both their top and bottom lines. Roche (OTCQX:RHHBY -1.5%), Amgen (AMGN +0.1%), Sanofi (SNY -1.3%) and Gilead Sciences (GILD -1.2%) are all actively on the prowl for acquisitions.
- Medivation (MDVN +0.1%), with its prostate cancer drug Xtandi (enzalutamide), is currently in play. Sanofi has been the most aggressive with two unsuccessful bids, but Pfizer (PFE) and Celgene (CELG -0.6%) are supposedly interested.
- Analysts say Incyte (INCY -0.4%), with polycythemia vera and myelofibrosis drug Jakafi (ruxolitinib), and Seattle Genetics (SGEN -0.8%), with lymphoma drug Adcetris (brentuximab vedotin), are the most attractive takeover targets.
- Recent transactions include AbbVie's (ABBV -0.3%) buyout of Stemcentryx, Jazz Pharmaceuticals' (JAZZ -0.8%) takeout of Celator Pharmaceuticals and Bristol-Myers Squibb's (BMY -0.2%) acquisition of Cormorant Pharmaceuticals.
Thu, Jul. 7, 8:28 AM
Thu, Apr. 28, 11:37 AM
- Credit Suisse claims Medivation (MDVN +8%) is worth $55 a share, ~5% above Sanofi's (SNY -1.1%) unsolicited bid of $52.50. It says much of the attention has focused on the prospects of prostate cancer drug XTANDI (enzalutamide), approved by the FDA in August 2012, which generated $1.15B in the U.S. last year as reported by development and commercialization partner Astellas Pharma (OTCPK:ALPMF)(OTCPK:ALPMY). What appears to be underrepresented is the value of the company's pipeline, led by late-stage PARP inhibitor talazoparib.
- According to the analyst, other potential bidders include AstraZeneca (AZN -0.5%), Roche (OTCQX:RHHBY -0.5%) and Celgene (CELG +0.9%).
- AstraZeneca reportedly has held internal talks about an offer. Medivation rejected Sanofi's first approach several weeks ago, so the bidding could turn hostile if the board rejects $52.50, a likely scenario.
- Citi says Sanofi's offer is a bit light considering MDVN's 52-week high of $66.39, hit in June of last year. The board might reject the offer based purely on technical grounds.
- Previously: Medivation +9% AH on reported Sanofi takeover effort (April 12)
- Previously: Report: AstraZeneca held talks for Medivation bid (April 18)
Tue, Feb. 2, 5:37 PM
- Pacific Biosciences (NASDAQ:PACB) jumped into the close in the last hour, up 24.3%, on news that Roche Holding (OTCQX:RHHBY -2.3%) approached the firm to talk buyout, Reuters reports.
- Price disagreement means the talks haven't advanced yet, sources said.
- Roche's interest lies in Pacific Biosciences' advanced gene sequencing technology. The two formed a development/distribution partnership in 2013.
- A deal in this area would show continued signs of life in life science M&A. Roche has been making small deals over the past year to fill out some therapeutic areas.
Mon, Jan. 11, 7:28 AM
- Roche (OTCQX:RHHBY) acquires Tensha Therapeutics for an upfront cash payment of $115M plus up to $420M in milestones. The Cambridge, MA-based firm develops cancer therapies based on innovative epigenetic technology that disrupts proteins called BET (bromodomain and extra terminal). Its lead product candidate is TEN-010, a small molecule BET inhibitor currently in Phase 1b development.
- BET proteins play a key role in mediating gene control and cellular memory. In cancer, they activate growth and survival genes. They also contribute to cancer cell memory by binding to the genome as molecular bookmarks.
Oct. 9, 2015, 7:46 AM
- Roche (OTCQX:RHHBY) acquires Berkeley, CA-based privately held Adheron Therapeutics. Under the terms of the deal, Adheron shareholders will receive $105M upfront plus potential milestones of up to $475M.
- Adheron has developed a technology that disrupts immune cell adhesion through a cell surface protein called Cadherin-11, which has the potential for treatments for a range of inflammatory and autoimmune diseases. Its lead product candidate is SDP051, a humanized monoclonal antibody targeting Cadherin-11 that just completed Phase 1 development.
- Cadherin-11, a protein that acts as an "adhesive" between cells, is a key mediator of joint destruction in rheumatoid arthritis and plays a key role in fibrotic pathology.
Aug. 19, 2015, 7:25 AM
- Roche (OTCQX:RHHBY) acquires privately-held Wilmington, MA-based Kapa Biosystems, a provider of genomic tools that optimize enzymes for next-generation sequencing (NGS), polymerase chain reaction (PCR) and real-time PCR applications. Kapa's large portfolio of NGS reagents, including novel DNA polymerases, have the potential to improve the performance of the entire sequencing workflow.
- Financial terms of the transaction are not disclosed.
Aug. 13, 2015, 6:57 AM
- Roche (OTCQX:RHHBY) acquires privately-held Los Gatos, CA-based GeneWEAVE for $190M upfront plus up to $235M in product-related milestones. Once closed, the company will be integrated into Roche Molecular Diagnostics.
- GeneWEAVE develops clinical microbiology diagnostic solutions to aid healthcare professionals in their fight against drug-resistant bacteria. Its technology, called Smarticles, measures antibiotic susceptibility in addition to the detection of bacterial nucleic acid. The company refers to it as "Sample-In/Susceptibility-Out." The approach provides healthcare providers access to quick and accurate diagnoses that enable them to make more rapid informed treatment decisions.
Apr. 2, 2015, 12:45 PM
- At a special meeting of Foundation Medicine (FMI +0.2%) stockholders, almost all of the 78% of the total number of outstanding shares eligible voted in favor of Roche's (OTCQX:RHHBY +0.6%) plan to acquire a majority stake in the firm. The successful vote satisfies one of the remaining closing conditions of the proposed deal.
- The transaction will include Roche's pending tender offer, which expires on April 6, to buy up to 15.6M shares of FMI common stock at $50 per share and the purchase of 5M newly issued shares of common also at $50.
- Previously: Roche to purchase majority stake in Foundation Medicine (Jan. 12)
Feb. 9, 2015, 4:01 PM
- Roche (OTCQX:RHHBY -2.5%) acquires Potsdam, Germany-based Signature Diagnostics AG, a translational oncology and genomics company that develops large blood plasma and tissue biobanks in multiple cancers that are constructed from multicenter prospective clinical studies. Signature uses its biobank samples with clinical progression and genetic data to develop and validate circulating cell-free DNA (cfDNA) tests, which show promise in non-invasive treatment response monitoring.
- Roche intends to leverage Signature's expertise in cancer biobanks and next generation sequencing (NGS) assay development to accelerate the development of targeted NGS-based diagnostics.
- Specific terms of the deal are undisclosed.
Jan. 16, 2015, 6:14 AM
- Looking to gain access to an experimental drug to treat spinal muscular atrophy, Roche (OTCQX:RHHBY) has agreed to buy privately-held Trophos.
- The acquisition is the latest in a spate of deals by Roche, following its purchase of a $1B stake in Foundation Medicine and licensing agreement with Genome pioneer J. Craig Venter.
- Under the terms of the agreement with Trophos, the French firm's shareholders will receive an upfront payment of €120M ($140M), plus further payments based on predetermined milestones worth up to €350M.
- OTCQX:RHHBY -2.2% premarket
Jan. 12, 2015, 2:14 AM
- Roche (OTCQX:RHHBY) is acquiring a majority of Foundation Medicine (NASDAQ:FMI) for more than $1B, by buying a combination of outstanding and newly issued shares for a 52.4%-56.3% stake on a fully diluted basis.
- Foundation is the leader in the growing area of sequencing the genes of tumor samples, looking for mutations that can help predict which drug will be most effective for a particular patient.
Dec. 2, 2014, 7:10 AM
- Roche (OTCQX:RHHBY) acquires privately-held San Jose, CA-based Ariosa Diagnostics for an undisclosed sum. Ariosa provides molecular diagnostic testing services, principally non-invasive prenatal testing using cell-free DNA technology.
- The company's Harmony Prenatal Test measures fetal cell-free DNA from a sample of the mother's blood. It is designed to assess the risk of Down syndrome.
Nov. 24, 2014, 8:40 AM
- Tetraphase Pharmaceuticals (NASDAQ:TTPH) is reportedly considering selling itself after being approached by interested suitors. Sources say the acquirer could be Acetelion (OTCPK:ALIOF) (OTC:ALIOY) or Roche (OTCQX:RHHBY).
- The attraction is Tetraphase's antibiotic eravacycline, currently in Phase 3 development. Both oral and IV formulations of the drug have demonstrated higher dose response rates than Johnson & Johnson's (NYSE:JNJ) Levaquin (levofloxacin) for the treatment of complicated urinary tract infections. In the Ignite-2 study, patients receiving 200 mg eravacycline IV-to-oral doses achieved a response rate of 70.8% while patients receiving 250 mg IV-to-oral doses achieved 64.3%, both significantly ahead of Levaquin's 52.2% response rate.
- A trial comparing eravacycline to Merck's (NYSE:MRK) Invanz (ertapenem) for the treatment of complicated intra-abdominal infections is underway.
- TTPH is up 18% premarket on light volume.
- Previously: Tetraphase completes eravacycline Phase 3 enrollment
Aug. 25, 2014, 7:12 AM| Aug. 25, 2014, 7:12 AM
Aug. 24, 2014, 5:31 PM
- 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.
Headquartered in Basel, Switzerland, Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. Roche is the world's largest biotech company, with truly differentiated medicines in oncology, immunology, infectious diseases, ophthalmology and... More
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