The rumor mill today spit one out that had Roche seeking $15 B in financing so that it could gobble up BioMarin. The latter's share surged 10% of the back of the rumor. Unfortunately, Roche CEO, Severin Schwan quickly dimissd the idea saying Roche had plenty of cash (over $3.9 B) on hand and that a purchase of BioMarin really didn't fit the company's strategy and that it was too expensive. Roche is well known to follow pretty rigid valuation models when looking at deals. Overpaying for assets is not their thing.
But since Roche is siting on a lot of cash -- they have come up as a candidate buyer in the biotech market a few times recently as they were linked as a possible buyer of Alexion only a few weeks-months ago. Roche seems lukewarm to enter the orphan drug space, occupied by both Alexion and BioMarin, and also isn't going to overpay for anyone (see Illumina earlier this year).
Posted by Bruce Lehr Sep 19th 2013.