Genentech Completes Acquisition Of Tanox

Genentech Completes Acquisition Of Tanox

Genentech Inc. announced Thursday that it has completed the acquisition of Tanox Inc., a deal that was approved by Tanox shareholders in January.
Genentech announced the waiting period under the Hart-Scott-Rodino Act has expired, and the deal could be finalized.

Under the terms of the agreement, Tanox shareholders are entitled to $20 in cash per share of common stock held at the closing, for a total cash value of about $919 million. The funds will come from Genentech's cash on hand.

Genentech, Tanox and Novartis have collaborated on the development and commercialization of Xolair - an asthma medication - since 1996. With the acquisition finalized, Genentech eliminates the royalty it previously paid to Tanox on Xolair sales, and obtains Novartis' profit share and royalty payments to Tanox.

Genentech operates a drug manufacturing facility in Vacaville.