Roche Doesn't Have Enough Money for Genentech Deal
A few days ago BNET noted that the Roche-Genentech deal was conspicuous by its absence because, among other reasons, "liquidity -- meaning the credit Roche needs to make the deal -- has dried up." Reuters put some numbers on that this morning with a report noting that there isn't enough loan money in the world (figuratively, at least) for Roche to make the deal:
The sheer size of the jumbo deal would eclipse today's shrinking loan market -- a fact which senior banking sources say is putting pressure on Roche to consider alternative funding options. These could be a combination of loans, bonds, equity and cash.Roche needs $45 billion. Such a loan would be too big an asset for any lending bank to sell on the tight market at this time.
Even if Roche does find the money, Genentech just keeps on getting more expensive. New data on Avastin gives the drug a stronger case as a first line use in advanced breast cancer:
The results also could bolster the South San Francisco, Calif., biotechnology company's argument for a higher offer from Roche Holding AG for the 44% of Genentech it doesn't already own.