|FIN |Genentech |5/02/2011 | |
|Discussion Questions |Key Players / People |
|Why is Roche seeking to acquire the 44% of Genentech it does not own? From Roche’s point of view, what are the advantages of owning 100% of Genentech? What are the |Arthur Levinson- Gen’’s Chairman and CEO |
|risks? Can Roche finance this deal? |Franz Humer – Chairman of Roche |
| | |
|Reasons for acquisition (100% ownership): | |
|The old model that had served both companies since 1990 so well was beginning to show signs of wear | |
|Market overlap/direct competition: Genentech was increasingly coming into direct competition with Roche in several US markets as well as markets outside the US | |
|Product/strategy overlap: Genentech was encroaching on Roche’s traditional territory (developing small molecular products) while Roche was preparing to launch