Roche Holding Ltd. (VTX:ROG) is all set to complete one of the latest pharmaceutical sector deals by acquiring InterMune Inc (NASDAQ:ITMN) for $8.3 billion. Roche Holding Ltd. (VTX:ROG) will pay $74.00 for every single share of InterMune Inc (NASDAQ:ITMN).
Both the boards of Roche Holding Ltd. (VTX:ROG) and InterMune Inc (NASDAQ:ITMN) have agreed to a merger agreement and Roche Holding will make a tender offer before August 29,2014 for acquiring the remaining outstanding shares of InterMune. According to the estimates, this transaction will not affect the earnings per share in 2015 and it will be an all-cash transaction.
The main reason for acquiring InterMune Inc (NASDAQ:ITMN), associated with pulmonology and fibrotic health problem’s research and development of treatment therapies, is to offer more strength to the global respiratory portfolio of Roche Holding Ltd. (VTX:ROG).
According to the CEO of Roche, Severin Schwan, “We are very pleased that we reached this agreement with InterMune. Our offer provides significant value to InterMune’s shareholders and this acquisition will complement Roche’s strengths in pulmonary therapy. We look forward to welcoming InterMune employees into the Roche Group and to making a difference for patients with idiopathic pulmonary fibrosis, a devastating disease.”
This is the large acquisition made by Roche Holding Ltd. (VTX:ROG) since its acquisition of Genentech for $47 billion in 2009. InterMune Inc (NASDAQ:ITMN) reported revenue of $35.7 million in its second quarter 2014 with an increase of 148% in its revenue from the same period previous year. The company reported net loss of $71.2 million for the quarter or $0.72 per share. InterMune had cash, available-for-sale securities, and cash equivalents worth $560.2 million at the end of the second quarter.
This article has been written by Prakash Pandey and edited by Serkan Unal.