Genentech completes $919 million acquisition

Genentech has announced that the waiting period under the Hart-Scott-Rodino Act has expired and it has completed the acquisition of US monoclonal antibody specialist Tanox. Shareholders of Tanox approved the merger agreement in January this year.

 Under the terms of the agreement, originally announced by the companies in November last year, Tanox stockholders are entitled to receive $20 in cash per share of common stock held at the closing, for a total cash value of approximately $919 million. These funds are being provided from Genentech's cash on hand. As a result of the acquisition, shares of Tanox common stock are no longer being traded on the NASDAQ Global Market.

 "We are pleased with the closing of this important transaction which will provide us with improved profitability on Xolair, our FDA-approved anti-IgE monoclonal antibody for patients with moderate-to-severe allergic asthma," said David Ebersman, executive vice president and chief financial officer. "We will continue to work with our collaborator, Novartis to advance potential new indications and formulations of Xolair. We thank the Tanox employees, executive team and board of directors for their commitment to develop novel therapies for patients, and their efforts and dedication during the transition." The three-way collaboration between Genentech, Tanox and Novartis on the development and commercialization of Xolair (Omalizumab) began in 1996. The closing of the acquisition allows Genentech to eliminate the royalty on sales of the drug, which it previously paid to Tanox, and obtains Novartis' profit share and royalty payments to Tanox.