Genentech to acquire Tanox for $919M

Biotechnology major Genentech says that it has reached agreement to acquire fellow USA-based Tanox, a company specializing in the discovery and development of biotherapeutics based on monoclonal antibody technology, for a cash consideration of $20.00 per share, a total of around $919.0 million. The terms of the deal have been approved by both firms' boards of directors, but still require both sets of shareholders' agreement and clearance under the Hart-Scott-Rodino Act.

News of the proposed transaction sent Houston-based Tanox' share price rocketing 43% to $19.00 in after-hours trading on November 9, the day of the announcement, while Genentech's stock dipped 0.3% to $81.15. The move is generally seen as positive for the biotechnology giant, which has, thus far, shunned acquisitions.

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