Thursday, Aug 2, 2007
South San Francisco, Calif. -- August 2, 2007 --Genentech, Inc. (NYSE: DNA) announced that the waiting period under the Hart-Scott-Rodino Act has expired and it has completed the acquisition of Tanox, Inc. Tanox shareholders approved the merger agreement on January 15, 2007.
Under the terms of the agreement, originally announced by Genentech and Tanox on November 9, 2006, Tanox stockholders are entitled to receive $20.00 in cash per share of common stock held at the closing, for a total cash value of approximately $919 million. These funds are being provided from Genentech's cash on hand. As a result of the acquisition, shares of Tanox common stock are no longer being traded on the NASDAQ Global Market.
"We are pleased with the closing of this important transaction which will provide us with improved profitability on Xolair, our FDA-approved anti-IgE monoclonal antibody for patients with moderate-to-severe allergic asthma," said David Ebersman, executive vice president and chief financial officer. "We will continue to work with our collaborator Novartis to advance potential new indications and formulations of Xolair. We thank the Tanox employees, executive team and board of directors for their commitment to develop novel therapies for patients, and their efforts and dedication during the transition."
Genentech, Tanox and Novartis have collaborated on the development and commercialization of Xolair® (Omalizumab) since 1996. With the closing of the acquisition, Genentech eliminates the royalty on Xolair sales which it previously paid to Tanox and obtains Novartis' profit share and royalty payments to Tanox.
Founded more than 30 years ago, Genentech is a leading biotechnology company that discovers, develops, manufactures, and commercializes biotherapeutics for significant unmet medical needs. A considerable number of the currently approved biotechnology products originated from, or are based on, Genentech science. Genentech manufactures and commercializes multiple biotechnology products and licenses several additional products to other companies. The company has headquarters in South San Francisco, California and is listed on the New York Stock Exchange under the symbol DNA. For additional information about the company, please visit http://www.gene.com.