1. F. Hoffmann-La Roche, Ltd and Genentech, Inc. Basel and
South San FranciscoMathieu StiehlBachelor en Marketing et en
Affaires InternationalesEcole de Management de Strasbourg - Ple
Formation CCI
2. Contents Entities involved Proposal and
agreementTransformations and success factors
3. Contents Entities involvedWhat are these two companies and
where are they from? Proposal and agreementTransformations and
success factors
4. Silicon Valley versus SwitzerlandStrongest nuances High
Collectivism High individualism Low uncertainty avoidance High
uncertainty avoidance Low power distance Low power distance High
masculinity High masculinity Short term oriented Short term
oriented [Roche is] Swiss and Genentech is a bunch of
entrepreneurial California cowboys. Laurence Lasky, Silicon Valley
venture capitalist
5. Roche Group Large group in the healthcare industry
Hoffmann-La We Innovate Healthcare Roche Ltd. Horizontal structure
European management Swiss Global Consensus decision making Group
200 affiliates in 80 countries Founded by Fritz Hoffmann-La Roche
in 1896Family business Today the Roche family is still on the Board
of Directors
6. Genentech Business specialized in biotechnologyGenentech,
Inc. In Business for Life Vertical structure California based,
Silicon Valley style company American Single decision making
Company Local operations Venture born Robert A. Swanson (venture
capitalist) company Dr. Herbert W. Boyer (biochemist) in 1976
7. Contents Entities involved Proposal and agreement How did it
happen aand at what cost?Transformations and success factors
8. Up to 2009 Relatively close relationship Ownership: 56% of
Genentech shares 18 Years of partnership and financial help of
today key products of Genentechs portfolio such as Herceptin and
Avastin Shared information in the pipelineOur long and successful
participation in Genentech has providedgreat benefits to both of
our companies and shareholders Franz Humer, Chairman, Roche
9. Value propositionOn July 21st, 2008 Roche makes an offer to
acquire all outstandingshares of Genentech for US$89.00 per share
in cash with thefollowing advantages: Genentechs culture to be
maintained; South San Francisco site to operate as an independent
research and early development center and become headquarters of
combined U.S. commercial operations Improved operational efficiency
to result from reduced complexity, elimination of duplications and
increased scale in the U.S. Transaction to deliver annual pre-tax
synergies of US$750 -$850 million
10. Agreement Roche purchases all Genentech shares and gains
complete access to pipeline information, research and early trials
remain independent Deal was reached on March 13th 2009 $95.00 per
share, a total of $46.8 billion, March 26th Genentech no longer
appeared in the NYSE Logo replaced slogan with the mention: Member
of Roche Group
11. Contents Entities involved Proposal and
agreementTransformations and success factors What had to change?
What made it successful?
12. Changes in management Manufacturing Human Resources
Portfolio management IT Department US commercial Finance
operationsThe Genentech Founders Research Center will operate as an
independentunit within the Roche Group to safeguard a diversity of
different approachesand to foster the long term flow of novel
breakthrough medicines. Severin Schwan, CEO Roche
13. Key success factors Bring together both communities,
respect and understand differences between cultures Stay focused on
the business and committed to science Remain optimistic about the
futureI hope employees () will seize the opportunity to think and
actopenly and creatively about the future of Roche and
Genentechtogether. Arthur Levinson, former Chairman, Genentech
14. In conclusionTwo years after the merger there are still
somedifficulties Implementations of IT Merger or acquisition
question Think Global
15. THANK YOU FOR YOUR ATTENTION
16. Q&A
17. Appendix
18. DefinitionsMerger: The combination of one or more
companies, or otherbusiness entities into a single business entity
the joining of twoor more companies to achieve greater efficiencies
of scale andproductivity.Acquisition: The purchase of one
corporation by another,through either the purchase of its shares,
or the purchase of itsassets. Source: www.entrepreuneur.com