Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Swiss drug maker Roche has entered into a definitive agreement to acquire US-based biotechnology firm InterMune for $8.3bn.
Subscribe to our email newsletter
With this acquisition, Roche is eyeing to expand its offerings and bolster its presence in the treatment of deadly lung diseases.
The company’s offer of $74 a share represents a 38% premium over InterMune’s closing share price on 22 August 2014 of $53.80.
As part of the deal, Roche will start a tender offer by 29 August 2014, to purchase all outstanding shares of InterMune common stock.
The deal will see InterMune file a recommendation statement containing the unanimous recommendation of its board that its shareholders tender their shares to Roche.
InterMune sells a drug called pirfenidone to treat idiopathic pulmonary fibrosis (IPF), a fatal disease characterized by progressive loss of lung function due to fibrosis (scarring), which hinders the ability of lungs to absorb oxygen.
Pirfenidone has been marketed by InterMune in the European Union and Canada as Esbriet since receiving regulatory approvals in 2011 and 2012 respectively.
Apart from pirfenidone, InterMune has research programs exploring new targets and pathways that may ultimately lead to improved treatment options for people with IPF and other fibrotic diseases.
Roche CEO Severin Schwan said: "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."
In the US, Roche sells Xolair for the treatment of severe and allergic asthma, and Pulmozyme for cystic fibrosis.
Citi is the financial advisor and Davis Polk & Wardwell is the legal counsel to Roche for the transaction that is expected to close this year.
InterMune’s financial advisors include Centerview Partners and Goldman Sachs, while Cravath, Swaine & Moore is the legal counsel.
The pharma sector has witnessed deals worth $87bn signed in June alone, which is more than the entire 2013, reported the Wall Street Journal citing EvaluatePharma.
Roche’s last big deal was in 2009 when it paid $46.8bn for a stake in biotech firm Genentech.