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Biotech / Medical : Biotech Valuation
CRSP 56.68-2.4%Dec 12 9:30 AM EST

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To: quidditch who wrote (5324)1/4/2002 10:59:49 AM
From: Biomaven   of 52153
 
quid,

First let me correct myself - the merger was with Boehringer Mannheim not Ingelheim. It was consummated in 1997 with a purchase price of around $11 billion. However note that BM was more than its diagnostics division - it also had pharma sales of around a billion and a big orthopedic division (DePuy). The BM diagnostics seem to have been about half of the BM sales prior to the merger.

It is pretty clear to me that the license is worth far more to Roche than to anyone else. Abbott already has a system and so they wouldn't be interested. Bayer is a possibility, but it would be very tough to successfully compete in this centralized testing market starting from virtually scratch.

Peter
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