Genentech to Buy Tanox

The deal is worth $919 million.
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Genentech

(DNA)

set plans to buy

Tanox

(TNOX)

, a company specializing in the development of biotherapeutics based on monoclonal antibody technology, for $20 a share.

The total value of the transaction is about $919 million.

Genentech and Tanox have been working together with

Novartis

(NVS) - Get Report

since 1996 to develop and commercialize Xolair, a monoclonal antibody approved by the Food and Drug Administration in 2003 as a treatment for patients with moderate-to-severe allergic asthma.

As part of the deal, Genentech will also acquire Tanox's product pipeline.

Shares of Genentech lost 1 cent to $81.34 after the close Thursday. Tanox ended regular trading at $13.64. The stock has a 52-week high of $21.