GEN Exclusives

More »

GEN News Highlights

More »
Nov 10, 2006

Genentech Spends $919M to Increase Financial Benefits from Xolair

  • Genentech will acquire Tanox for $20 per share for a total cash value of approximately $919 million. The announcement was made late Thursday, November 9, 2006. This offer represents a 47% premium over Tanox’ closing price on Thursday of $13.60. The companies expect to close the transaction in the first quarter of 2007.

    Genentech and Tanox have been working together in collaboration with Novartis since 1996 to develop and commercialize Xolair®, an anti-IgE Mab approved by the FDA in 2003 as a treatment for patients with moderate-to-severe allergic asthma. With this acquisition, Genentech will improve its financial results for Xolair by eliminating the royalty it currently pays to Tanox and by obtaining Novartis' profit share and royalty payments to Tanox. Genentech reported that U.S. sales of Xolair in the third quarter of 2006 increased 30% to $107 million from the same period of 2005.

    Tanox’ product pipeline includes TNX-355, an HIV/AIDS drug that has shown antiviral activity in Phase II trials; TNX-832, an acute lung injury/acute respiratory distress syndrome drug in Phase I/II trials; and TNX-650, a Hodgkin’s drug in Phase I trials. Genentech will add these products to its line of biooncology, immunology, and tissue growth and repair products, including Avastin®, Rituxan®, and Activase®.

    The companies plan to review current operations and opportunities at Genentech for Tanox' employees. Tanox opened Friday at $19.60, a 44% climb from its close the previous day.   



Jobs

GEN Jobs powered by HireLifeScience.com connects you directly to employers in pharma, biotech, and the life sciences. View 40 to 50 fresh job postings daily or search for employment opportunities including those in R&D, clinical research, QA/QC, biomanufacturing, and regulatory affairs.
 Searching...
More »

GEN Poll

More » Poll Results »

Tackling Climate Change

Do you think most companies will respond positively to the People’s Climate March?