Swiss Pharmaceutical giant Roche Holding AG announced plans Sunday to buy San Francisco, Calif.-based biotech company InterMune Inc (ITMN) for $8.3 billion in cash, marking the latest multibillion-dollar deal in a consolidating pharmaceutical sector.
Under the terms of the merger agreement, the Swiss drugmaker will pay $74.00 a share for InterMune, representing a premium of 38% to the stock’s closing price-per-share [pps] on Friday, August 22/$53.80, and a premium of 63% to InterMune’s unaffected closing pps on August 12/$45.49.
Commenting on the transaction, Severin Schwan, CEO of Roche, said, “We are very pleased that we reached this agreement with InterMune. 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.”
The deal has been approved by both companies’ boards, according to a press release announcing the agreement.
The companies expect the merger to close this year.