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.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts