Roche/Genentech: Remote control

The Swiss usually put a high value on independence and fiscal conservatism. But the country’s biggest drug maker, Roche Holding AG, is bucking both those conventions with a bold $44bn cash acquisition. Its proposed buyout of the 44% minority holders in US-based Genentech, a leading developer of cancer therapies, would take Roche from a strong SFr10bn net cash position to one of significant leverage. Roche faces almost certain credit downgrades, but expects its abundant cash flow will allow for ...