Roche has proposed to acquire the outstanding interest in Genentech for a total of approximately $43.7 billion. Roche acquired a majority in Genentech in 1990 and currently owns 55.9% of the company.
   
Under the plan, Genentech will operate as an independent research and early development center within Roche from its existing campus in South San Francisco, retaining its employees and approach to discovering and progressing new molecules. Roche's Palo Alto Virology R&D activities will relocate to South San Francisco, while its Palo Alto Inflammation group will become part of Roche's Nutley, NJ R&D organization. Nutley will host two global Disease Biology Areas (Oncology and Inflammation) as well as key functions in Metabolism. Genentech's site in South San Francisco and Roche's NJ campus will represent the biggest R&D centers in the U.S. within the Roche Group.
   
Roche's Pharma commercial operations in Nutley will be moved to Genentech's site in South San Francisco. The combined company's U.S. commercial operations in pharmaceuticals will use the Genentech name. The existing U.S. sales organizations of both companies will be maintained. Genentech's late stage development and manufacturing operations will be combined with the global operations of Roche. Roche's manufacturing in Nutley will be closed and support functions, such as informatics and finance, will be consolidated.
   
Severin Schwan, chief executive officer of Roche, said, "We are looking forward to working more closely with our colleagues from Genentech. We have great respect for their achievements and we will take the necessary steps to nurture Genentech's innovative and unique science-driven culture. The Genentech Founders Research Center will operate as an independent unit within the Roche Group to safeguard a diversity of different approaches and to foster the long term flow of novel breakthrough medicines. At the same time, we will be better able to share technologies and expertise in pharmaceuticals and diagnostics across the Group and broaden the mutual access to the external innovation networks of both companies. As Genentech has grown from a research-focused biotech venture into an integrated pharmaceutical organization, the transaction will also unlock synergies by leveraging the scale of the combined operations in the U.S. and improving operational efficiency."
   
The terms and conditions of the transaction will be determined through negotiations with the independent directors. Roche expects to complete the transaction as soon as possible following negotiation of a definitive merger agreement.

Roche

1H08 Revenues: $21.5 billion (+4%)

1H08 Earnings: $5.6 billion  (-2%)

Comments: Pharmaceutical sales were $16.8 billion (+3%). Oncology sales increased 15%, driven by Avastin (+36% to $2.3 billion), MabThera/Rituxan (+17% to $2.8 billion), Herceptin (+11% to $2.4 billion), Tarceva, (+28% to $574.2 million) and Xeloda (+14% to $560.5 million), which offset lower Tamiflu sales. Tamiflu sales declined $1.1 billion compared to 1H07 due to reduced pandemic stockpiling orders. R&D expenses were $4.0 billion (+12%).  

AMRI opened its first in vitro biology lab in Singapore and completed a 10,000-sq.- ft. lab expansion for medicinal chemistry discovery services, doubling the capacity of its Science Park III facility.
   
The in vitro biology group will test compounds synthesized by AMRI’s Singapore-based medicinal chemistry teams to deliver potency data using cell-based or biochemical assays. AMRI anticipates hiring an additional 70 or more chemists and biologists to staff the facility during the next three years.
   
“This expansion continues AMRI’s investment in building out a worldwide drug discovery and development platform. Along with parallel investments in the U.S., India and Hungary, AMRI’s global footprint is gaining a critical mass and customers’ acceptance due to our focus on quality, highest standards and a strong brand of excellence. This latest investment in Singapore continues our plan to provide customers a broad range of services, capabilities and geographic choices,” said chairman, chief executive officer and president Thomas E. D’Ambra, Ph.D.

Quentin Roach has been named senior vice president and chief procurement officer, Bristol-Myers Squibb. Mr. Roach will be responsible for global leadership for supplier relationship management, company-wide sourcing strategies, and procurement of all materials and services.
   
“As we transition Bristol-Myers Squibb to a next-generation BioPharma model, Quentin will play a key role in continuing to maximize the strategic value that procurement can deliver to the company,” said Carlo de Notaristefani, president of Technical Operations. “He brings extensive procurement and supply chain experience that will serve him well in his new position,” said Mr. de Notaristefani.
   
Prior to joining the company, Mr. Roach was vice president of Global Customer Strategy & Process Management at Bausch & Lomb Inc., where he also led the company’s Global Customer Strategy Steering Committee. While at Bausch & Lomb, he held a number of leadership roles in sourcing and procurement, supply chain, and packaging engineering. Earlier, he was chief purchasing officer and director of Auxiliary Operations at the University of Rochester/Strong Health System. He held a number of procurement and operations roles at other companies including Delphi Automotive Systems and General Motors Corp.