Roche Won’t Raise Hostile Bid For Ventana

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hostile-takeover.jpgTough talk from Franz Humer, the drugmaker’s ceo. He refuses to pay more than $3 billion for the diagnostic-test maker and adds that, so far, talks aren’t being held. “But I’m sure they will come around and see the attractiveness of our offer,” he tells Bloomberg News. In fact, Franz is waiting for Ventana to open negotiations.

Roche launched its $75-a-share bid in June in hopes of gaining access to a new test to identify which patients may respond to its Herceptin breast cancer medicine. Ventana rejected the offer and accused Roche of using ‘high-handed tactics’ in its pursuit. So far, Ventana shareholders have been lukewarm.

But Humer reiterated his belief that the offer is “fair and full” and played down the limited response. “This will take time to settle down and we’ve got all the patience that is needed in order to win Ventana over at the price level that we have given,” he tells Bloomberg. Just the same, Roche has extended its bid twice, most recently to Sept. 20, and has gathered only 13,430 of Ventana’s 34 million shares, as of Aug. 21. Ventana’s shares have traded above the Roche offer since it was made public.

“We’ve said $75 is a non-starter,” Ventana ceo Chris Gleeson tells Bloomberg. “The market agrees with us.” But not everyone agrees with everything Gleeson says. Last month, a federal judge in Phoenix ruled Ventana can’t use an Arizona anti-takeover law to block the bid after Roche sued Ventana and the state, claiming the 1987 law was unconstitutional.

Meanwhile, Ventana yesterday announced plans to buy Spring Bioscience for $28.9 million in cash to gain antibodies used for diagnostics. Ventana’s cfo, Larry Mehren, says the move isn’t about fendig off Roche’s bid, which he says is cheap. ”

Humer also reiterated previous earnings guidance for 2007, saying he expects revenue for the whole year to rise more than 10 percent, while earnings per share will rise more than sales. Humer steps down as ceo in March and will be replaced by Severin Schwan, who heads the diagnostic division will become Roche’s youngest ever ceo. “It’s time that a younger person takes the rein, with new views, new approaches,” says Humer, who will remain chairman.

In other matters, Humer is, of course, confident of prevailing in a legal battle with Amgen over Roche’s new anemia drug, Mircera. Last month, a US judge ruled Mircera infringes an Amgen patent and also limited some of Roche’s challenges to the validity of the patent and four others owned by Amgen that are the subject of a trial that began yesterday.

And the indefatigable Humer adds that Roche would “be able to cope with”‘ any restrictions that might be imposed on anemia drugs by the FDA. EPO drugs have come under scrutiny from doctors, lawmakers and federal officials since studies suggested they increased heart risks at high doses. An FDA panel meets next week to evaluate the safety and effectiveness of Amgen’s meds and a rival Johnson & Johnson drug for patients with kidney failure.

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