Genentech rejects Roche offer

South San Francisco, CA-A special committee of the Genentech Board of Directors has unanimously rejected a proposal by Roche under which Roche would have acquired the shares of Genentech it did not own for $89 per share. The committee said that the proposal substantially undervalued Genentech but left open the possibility of considering a subsequent offer should Roche make one.

“The special committee is confident in the company’s strong financial and clinical momentum and its uniquely productive research and development capabilities, which will continue to enhance shareholder value,” said Charles A. Sanders, MD, chairman of the special committee. “In addition, we look forward to the company maintaining its successful relationship with Roche, regardless of ownership structure.”

The special committee has approved the implementation of a broad-based employee retention program to address any employee concerns created by the Roche proposal.