Genentech deal clears a hurdle
From the Associated Press
HOUSTON —
Shareholders of Tanox Inc. on Monday approved the small biotechnology company’s acquisition by drug maker Genentech Inc.
Under the terms of the sale, Genentech, based in South San Francisco, would buy Houston-based Tanox for $919 million, or $20 a share.
The share price is a premium of 47% over Tanox’s closing price the last trading day before the deal was announced in November. The stock had traded between $11.55 and $21 in the year before the offer was announced. Shares closed Friday at $19.81.
The deal requires approval by regulators.
The acquisition would help streamline a partnership of Genentech, Tanox and Novartis in the development and commercialization of the asthma-fighting drug Xolair, which Tanox created.
