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Higher Genentech bid, bigger exodus?
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Would a bigger bid for Genentech just induce more scientists there to exit out the back door as Roche comes in the front? That's one of the questions arising about this potential mega-merger. In fact, evidence is starting to validate some early doubts about the match: Namely, that Roche might be unable to preserve Genentech's innovative culture, or, at the very least, that fears about losing that research-friendly feeling would send top talent packing.
Here's the worst-case scenario, according to bNet. A bunch of Genentech employees don't want to work for a big company like Roche, period (just check the boards at CafePharma for an unrepresentative sampling). But, more importantly, many scientists there have options that would fully vest in a Roche buyout, which would give them the money to leave. And it's not tough to get venture capital for startups with Genentech scientists at the helm, giving them even more financial incentive.
BNet does the math, and even at around $100, a Roche bid would offer some longtime Genentechers nice chunks of cash. And obviously, the higher the bid, the bigger those buyouts get. Recruiters and VCs have drawn up wish lists of coveted Genentech staffers and have been "ringing their phones off the hook," according to the San Francisco Chronicle.
But consider this, too: Roche will want to keep as many key players as it can. So a buyout could actually be a chance for those standouts to renegotiate a fatter pay package, bank their options money and see how things play out. The recruiters and VCs aren't likely to lose interest.
--read the BNet post
--see the San Francisco Chronicle story
--check out Derek Lowe's take at In the Pipeline
Related Articles:
Genentech rejects Roche's $43.7B buyout bid
Will Roche/Genentech team create industry model?
How to merge Roche and Genentech
Roche offer could swallow Genentech
Roche bid may trigger a Genentech standoff
Comments
By DNA Employee | Posted 12:37pm | August 21, 2008
This is very true, lots of us may take the money and run. This whole thing has left a bad taste in the mouth of many at DNA. I don't know a SINGLE employee that is excited about being part of Roche. For my part, I am convinced that Roche DOES NOT care if DNA comes unraveled. They want a few compounds to keep them treading water. What a shame that a foreign entity can destroy an iconic and unique American company.
By Anonymous | Posted 12:41pm | August 21, 2008
Just the fact that Roche thinks that Art Levinson is expendable demonstrates that they don't understand the culture. I know you want to make your mark Humer, let's just hope that mark is not shooting the goose that lays the golden eggs.
By DNA employee | Posted 2:24pm | August 21, 2008
I know for a fact that DNA folks don't want Roche buyout to happen period. Once Roche gets what they want they wont touch the R&D part of DNA. they need DNA R&D. And DNA will cease to exist.
By Big Pharma Jake | Posted 4:51pm | August 21, 2008
DNA employee
Keep dreaming, past behavior predicts future behavior. Roche needs Avastin... they may leave things alone for awhile, but the culture will change drastically. If they are able to align businesses and lay off a few thousand non R&D Genentech employees, plus move a bunch of Roche employees to South San Francisco, to make one big happy family, it will be no less than a miracle. Nothing like that has ever happened in the history of pharma mergers and acquisitions. As someone who worked for Roche for 5 years, I don't think they can pull it off.
Good luck and I am sorry
By Anonymous | Posted 2:10am | January 11, 2009
Second bid at 95? If they had trouble getting money for the first bid, how would Roche get the money for the second bid that's going to be rejected?
Analysts were betting on 110 to 120? How would Roche get the money for that?
Long on DNA. Very short on Roche.
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