Will Roche Go "Crazy" For Genentech?

Analysts are pretty much in agreement that Swiss drugmaker Roche is gonna have to pony up more than the 89 bucks it has already offered for the rest of Genentech it doesn't currently own. The $44 billion question, of course, is how much more. Shares of DNA keep hitting new highs as investors bet that Roche will revise. We've yet to hear a formal response from the three-member committee of independent directors that Genentech has formed to evaluate the bid. In the meantime, I think we've got a new outlier on the speculated takeout price. Sanford C. Bernstein biotech analyst Geoffrey Porges is out with a research note to clients this morning titled, "Genentech: What would Genentech REALLY Be Worth? And Why $130/Share Is Not As Crazy As It Sounds." Porges writes that his sum-of-the-parts analysis, which he details in the report,... [read full story]