Bayer’s bid to buy U.K.-based Roche, one of the world’s largest drugmakers, is a “total disaster,” according to a report released Monday.
The company is also seeking to take over Pfizer’s drug division.
The report, titled “Bayer’s Roche bid to take Pfizer drug unit off the shelf” by the Washington Post’s Paul Farhi, says that the deal is a direct threat to Pfizer.
The deal would give Bayer the largest drugmaker in the world, at $9 billion, a controlling interest in Roche’s global business, with a potential market value of $25 billion, and would enable Bayer to acquire U.C. San Diego-based Roche for an undisclosed amount, Farhi said.
“Roche has a huge drug pipeline.
It is the largest U.T.I. in the U..
S., and its annual revenue is $14.5 trillion,” Farhi wrote.
“In other words, it has a market cap of $10.8 trillion.
Roche’s stock price has been climbing steadily since 2014.
The price of a stock in the company is one of two things: its market value or the price it would fetch for Bayer’s stock.
And in this case, the price is going to be very high.”
Bayer has said it will continue to buy Roche’s drug units, but is not expected to make a significant purchase until 2019.
It would take a lot of money to buy Pfizer, Farhill wrote.
Bayer said it would buy Roche from Pfizer to keep Roche “in our portfolio.”
Bayer CEO David Rennie has said the proposed merger would make it easier for Pfizer and Roche to keep their existing business, but the deal could hurt the U