Roche to buy InterMune for $8.3 billion

SWISS pharmaceutical giant Roche has agreed to acquire Intermune, a California, USA-based company known for its product to treat a deadly lung disease, for $8.3 billion. The price tag is based on $74.00 per share in an all-cash transaction.  

Roche’s $74.00 per share offer represents a premium of 38% to InterMune's closing price on August 22, 2014, and a premium of 63% to InterMune's unaffected closing price on August 12, 2014., when it was first reported that a major pharmaceutical company was interested in the Brisbane, California drug maker.

InterMune's only product in the market, pirfenidone for idiopathic pulmonary fibrosis (IPF), is expected to expand Roche's respiratory product portfolio. Sold as Esbriet? in the EU and Canada since regulatory approval in 2011 and 2012, respectively. Regulatory approval by the US FDA for the IPF drug is in November 23, 2014.

IPF is a progressive, irreversible and ultimately fatal disease characterized by progressive loss of lung function due to fibrosis, or scarring in the lungs.  Roche markets Pulmozyme and Xolair in the US and has other novel therapeutic medicines targeting respiratory diseases in clinical development.

Under the terms of the merger agreement approved by the boards of InterMune and Roche, a tender offer to acquire all of the outstanding shares of InterMune's common stock at a price of $74.00 per share in cash will commence no later than August 29, 2014.

Following completion of the tender offer, Roche will acquire all remaining shares at the same price of $74.00 per share through a second step merger.  The closing of the transaction is expected to take place in 2014, and Roche plans a smooth transition of InterMune employees and operations into the Roche organization, ensuring readiness for an expected launch of pirfenidone in the US in 2014.

“Our offer provides significant value to InterMune's shareholders and this acquisition will complement Roche's strengths in pulmonary therapy.  We look forward to welcoming InterMune employees into the Roche Group and to making a difference for patients with idiopathic pulmonary fibrosis, a devastating disease," said CEO Severin Schwan.