Halozyme Therapeutics Inc (HALO)

[anythingteutonic]

Roche is buying privately-held San Diego-based Seragon for up to $1.7 billion ($725 million cash, the rest in potential earn-outs). The stated aim is to augment and complement its own breast cancer treatment R&D. Interestingly, Sergaon's most advanced experimental drug is currently only in initial Phase 1 clinical trials. As a result, the initial reaction appears to be that Roche is paying a hefty premium.

From Reuters:

"Seragon is the second notable acquisition in as many months for Roche, which bought privately held U.S. gene-sequencing firm Genia Technologies for up to $350 million in June, securing access to a technology that should allow it to decipher human genes more quickly at a cheaper cost.

"The acquisition represents a response to investors who wondered how Roche might use its cash now that its ratio of net debt to assets is back within its target band of zero to 15 percent after paying down debt from acquiring Genentech."