when Roche announced that it wanted to buy the remaining shares of Genentech that it already doesnt own for $ 43.7 billion Roche currently owns 56% of Genentechs stock. More importantly, Roche doesnt have control of Genentechs board of directors nor does it influence corporate strategy or product development.
Unlike many other pharma companies who have historicallypurchased biotechnology companies and then integrated them into existing corporate structures, Roche previously opted to buy controlling interests in companies and then allowed them to continue to operate independently with little corporate input or guidance. Unlike pharma culture, which is very structured and inherently conservative, the most successful biotechnology companies have been built on cultures that promote creativity and thinking outside the box. If Roche buys Genentech and attempts to integrate it into the existing Roche family of companies, I suspect that all of this will change dramatically.
For the past 30 years or so, Genentech has been one of the brightest stars in the biotechnology universe. s management team worked long and hard to implement and maintain a vision that was formulated way back in the late 1970s when the company was first formed.Even though it is the worlds largest and most financially successful biotechnology company, Genentech has steadfastly resisted the temptation to go and has worked diligently to maintain its biotechnology identity symbolized by innovation, creativity and employee-centric policies.
I have no doubt that if the Roche-Genentech deal is approved, there will be a mass exodus of talent from the company.Based on my experience, a publicly-treaded biotechnology employees greatest fear is the dreaded corporate takeover!I have yet to meet a biotechnology company employee who is willing to sacrifice freedom and creativity (despite a possible financial upside) for more structure, discipline and an endless plethora of rules!
In my opinion, the deal makes sense for Rochecompetition in the cancer space is intense and they want to hedge their future success on Genentechs oncology franchise.In the best case scenario, Roche will buy Genentech but allow it to operate as a wholly owned subsidiary with an independent management team that spends as little time in Basel as possible. I think the old adage If it aint broke, dont fix it is particularly apt here!
Until next time.
Good Luck and Good Job Hunting!!!!!.

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