Tuesday, July 29, 2008

Genentech and Roche

The recent news that Roche are looking to purchase the remaining shares in Genentech has certainly caused a a big stir in the Pharma industry.

One of the main reasons the partnership blossomed was because Roche left Genentech largely alone and they had very clear marketing distinctions with Genentech responsible for the US and Roche handling the rest of the world.

The two cultures are very different with a conservative Swiss company versus a dynamic US biotech, so it will be interesting to see what happens. If the deal goes ahead, the big question is will Roche continue to leave them alone, or will it change the relationship?

This looks a good deal for Roche on paper, but if I were Genentech, I'd probably be a little nervous; will the creativity and dynamism go down the pan if it become more integrated with a big Pharma company?

Time will tell on both fronts.

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