Will Roche Spin Genentech Off Again?

Does Roche’s recent acquisition of Genentech mean the end of the big-biotech business model? Has Genentech lost it’s independence? Not so, if history decides to repeat itself.

Roche has already bought (and sold) Genentech once before. It’s not unimaginable to think that they’re using the current economic crisis to do another value-based flip. Using an excerpt from Building Biotechnology to illustrate, Roche pocketed several billion dollars when it bought and sold Genentech in 1999:

Source: Building Biotechnology

So, before you write-off Genentech, consider that Roche may simply decide to flip them again.

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October 29, 2007

29 Oct 2007

Happy 25th, Humulin

Today marks the 25th anniversary of the FDA’s approval of the first drug produced by biotechnology, Genentech’s Humulin. I often use Humulin as a case study for biotechnology, because Genentech’s bacterial-fermentation approach to making insulin was revolutionary compared to the previous methods of harvesting insulin from pig pancreas.

Thanks for OpenMarket for reminding me of this important anniversary. Their post on the topic is here