Genentech rejects Roche’s $43.7 billion buyout

SAN FRANCISCO, Calif. Genentech has rejected Roche’s takeover bid, according to an announcement the drug company made Wednesday.

A committee of Genentech’s board of directors said Roche’s $89-per-share offer for the remaining stake in the company it doesn’t already own “substantially undervalues” it. Roche acquired a majority stake in the company in 1990.

Roche made the offer to buy the remaining 44 percent stake in the company in July, but shareholders accused the Swiss drug maker of abusing its power, and filed a lawsuit against it in a Delaware court. Roche responded that its actions were legal.

“The special committee is confident in the company’s strong financial and clinical momentum and its uniquely productive R&D capabilities, which will continue to enhance shareholder value,” committee member Dr. Charles Sanders said. “In addition, we look forward to the company maintaining its successful relationship with Roche, regardless of ownership structure.”