NEW YORK (The Deal) -- Switzerland's Roche Holding on Sunday extended a summer of dealmaking with an agreement to buy InterMune (ITMN) for $8.3 billion to expand its treatments for respiratory ailments.
Roche, of Basel, would pay $74 per InterMune share, a 38% bonus to the target's Friday close. The price is also a 64% bump to the stock's close Aug. 12, the day before rumors of a strategic review at the target surfaced.
Acquisitive Roche is hoping to cash in on the pending U.S. approval of InterMune's pirfenidone treatment for idiopathic pulmonary fibrosis, or IPF. Patients with IPF gradually lose the ability to breath as fibers fill up their lungs.
"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 Roche CEO Severin Schwan in a statement.InterMune's new drug has already won approval in the European Union and Canada, where it is marketed under the name Esbriet. The IPF treatment has also already been acknowledged as a "breakthrough therapy" by the FDA and is expected to be cleared for use on Nov. 23, according to Roche.