Munch a pharma?
Roche CEO says would consider alliances,merger-WSJ
NEW YORK, April 12 (Reuters) - Roche Holding [ROCZg.S] Chief Executive Franz Humer said he would consider marketing alliances or even a merger to revive the company's drugs arm, the Wall Street Journal reported in its online edition on Wednesday.
Earlier in the day, the Swiss company said its key drug sales declined in the first quarter, and that drug sales growth was set to approach, but not quite match, the industry average this year.
Roche currently has an alliance with biotech firm Genentech Inc. [DNA.N], and the paper said such alliances may be Roche's only option, since its shareholder structure, which gives control to its founding family, and its less-than-promising product pipeline, offer little incentive to prospective merger partners.
Humer told the paper Roche was considering all options to boost revenue and margins, including co-marketing agreements with rivals or a merger. The company also is reviewing units and may cut jobs and close plants, the Journal said.
In the case of a merger Roche would evaluate "very carefully" the economics of a deal and the strategic fit between the companies, the report said. Humer didn't name any potential merger partners, the report said.
((New York Newsdesk, (212) 859-1700))
REUTERS Rtr 01:47 04-12-01
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