Roche seeks financing for potential bid

By IVCPOST Staff Reporter

Jul 12, 2013 11:11 PM EDT

Roche Holding AG announced that they are seeking financing for their potential bid for Alexion Pharmaceuticals Inc.  The deal between Roche and Alexion, if successful, will be the largest healthcare deal of the year.The Alexion acquisition would mark Roche's biggest acquisition since 2009. The last acquisition was for Genentech where Roche paid an estimated US$47 billion to gain full ownership of Genentech.

People familiar with the deal are saying that there is no guarantee that the bid for Alexion would materialize. Roche and Alexion declined to comment about details for the potential bid.

Roche is making a mark in the industry as a growing diagnostics business. The pharmaceutical giant is also known for its portfolio of cancer drugs, including the blockbuster Avastin. The buyout of Alexion would allow Roche to a more diversified field as it ventures into a newly lucrative area for drugmakers.

Analyst Bret Holley wrote in a research note, "We continue to view this area (rare diseases) as very attractive, with high market penetration and strong drug pricing supporting substantial revenue growth. However, we would be very surprised if Alexion was actively soliciting an acquisition...we would expect that any deal to acquire the company would almost certainly be at a substantial premium."

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