Roche has its eye on PDL BioPharma(PDLI Quote).
So I decided to look into it and I can see the Roche buying that company out now that they completed the Genentech buyout. PDL BioPharma is a royalties generating company that collects fees for the use of their humanized antibodies technology. Currently they hold patent licenses for the following drugs:
- Genentech, Inc.: Herceptin® (trastuzumab), Xolair® (omalizumab), Raptiva® (efalizumab), Avastin® (bevacizumab), and Lucentis® (ranibizumab injection)
- MedImmune, LLC: Synagis® (palivizumab)
- Wyeth: Mylotarg® (gemtuzumab ozogamicin)
- Elan/Biogen Idec: Tysabri® (natalizumab)
- Chugai/Roche: Actemra (tocilizumab)
- UCB Celltech: Cimzia (certolizumab)
On dealmaking, don't expect Roche to make any big buys anytime soon. When the deal was completed in March, CFO Erich Hunziker -- who retained his position -- said in a conference call the firm wouldn't make acquisitions valued at more than $60 million over the next two or three years. A few days after that statement, Roche acquired Innovatis AG of Bielefeld, Germany, for €15 million ($19.6 million).
PDL BioPharma has a market cap of $1.09 billion so it is way out of Roche's price range for two or three years. I mean they did just pay $70 billion for Genentech so they might wait a while before they reduce their costs with a buyout of PDL BioPharma. I can see it happening in a few years just so Roche doesn't have to pay out several million in royalties for the next several years.