Anatomy of a Merger: 'Hostile Deals Become Friendly in the End, Right?'
Episode Description
When Roche Holding acquired full ownership of Genentech last year, the $46.8 billion deal was the culmination of a more than 20-year relationship between the Swiss pharmaceutical giant and the Silicon Valley biotechnology company. In a recent presentation at Wharton San Francisco, Steve Krognes -- a former Roche executive who is now senior vice president and CFO of Genentech -- talked about the pharma company's decision to pursue the merger, efforts to raise capital amid the beginnings of the 2008 recession, and the aftermath of the deal. đź“‚ Management;Health Care Management
Brief Summary
Genentech's revenue growth and acquisition challenges amid financial crises are discussed in this episode.
Key points
- Genentech's Revenue Growth. Genentech's revenues skyrocketed from $400 million in 1990 to $13.4 billion by 2008.
- The Impact of Competition. Facing competition from its own daughter company raised significant concerns for Genentech.
- Acquisition Announcement. The intent to acquire all minority shares was announced at $89 per share.
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Episode highlights
- Genentech's Revenue GrowthGenentech's revenues skyrocketed from $400 million in 1990 to $13.4 billion by 2008.“A fabulous success based on truly innovative medicines.”1:27Aug 31, 2010
- The Impact of CompetitionFacing competition from its own daughter company raised significant concerns for Genentech.“This is not a good thing, neither on the market nor in the pipeline.”5:06Aug 31, 2010
- Acquisition AnnouncementThe intent to acquire all minority shares was announced at $89 per share.“A unilateral announcement that sent share prices soaring.”5:38Aug 31, 2010
Tension
50/ 100Some tension
