Pharma BD Deal Intelligence

Genentech, Inc. (Roche Group) / Tanox Inc.

2006 · Acquisition/Merger · $919M · Complete

CALLED IT — OFF BY 5

A cash-flow cleanup deal that paid off: eliminating the Xolair royalty stream looks like a bargain now that Xolair is a multi-billion-dollar-a-year blockbuster.

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The coverage arc

Nov 09, 2006 Genetic Engineering & Biotechnology News Bullish

Genentech's primary motive was financial: by acquiring Tanox, Genentech eliminated its royalty obligation and captured Novartis profit-share/royalty flow, with…

Aug 03, 2007 PharmaTimes Bullish

Genentech completed the $919M Tanox acquisition at $20/share — a 47% premium — marking the company's first-ever M&A transaction and consolidating Xolair…

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Genentech's first-ever acquisition; Xolair (omalizumab) royalty consolidation

Did it work? Outcome assessment

A cash-flow cleanup deal that paid off: eliminating the Xolair royalty stream looks like a bargain now that Xolair is a multi-billion-dollar-a-year blockbuster.

Strategic verdict
Achieved Stated Rationale

Key facts

Related deals — scored

DealYearValueOutcome
Genentech, Inc. (Roche Group) / Tanox Inc. (this deal)2006$919M80
Genentech, Inc. (Roche Group) / Astex Pharmaceuticals2026$490M58
Genentech, Inc. (Roche Group) / Affimed N.V.2018$5.1B
Genentech, Inc. (Roche Group) / Hanmi Pharmaceutical Co. Ltd.2016$910M
Genentech, Inc. (Roche Group) / Regor Pharmaceuticals Inc.2024$850M
Genentech, Inc. (Roche Group) / OMass Therapeutics Ltd.2025$420M
Genentech, Inc. (Roche Group) / MaxCyte, Inc.2026

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