Roche makes hostile offer for Ventana

27 June 2007

With its efforts to negotiate a friendly merger deal with Ventana Medical Systems rebuffed, Swiss pharmaceuticals giant Roche has announced a hostile tender offer to acquire its target for about $3 billion at $75 per share in cash.

Ventana has advised shareholders to defer taking any action on Roche's offer and said in its website, "…the company's Board will review and consider Roche's offer and, following the commencement of the tender offer, will make a recommendation to shareholders within 10 business days." Without giving any further information.

With a majority stake in Genentech, Roche already has a strong position in biotechnology. Acquiring Ventana would help it build on its diagnostics presence, where it currently has in-vitro, molecular and clinical chemistry diagnostic products.

The acquisition would also give it access to technology that helps researchers and doctors better select the right drugs for individual patients — an emerging concept known as personalised medicine

Proponents of personalised medicine say it could reduce the costs and risks of developing drugs.

"By combining both companies' expertises in in-vitro diagnostics, cancer and virology, Roche and Ventana are able to enhance their positions in the area of personalised healthcare," Roche said in its website.