By Christopher P. Singer —

Genentech announced in an August 2, 2007 press release that the Hart-Scott-Rodino waiting period that applied to its acquisition of Tanox, Inc. has expired, and that the acquisition is now completed.  The merger agreement, originally approved by Tanox shareholders on January 15,
2007, provides a cash payment of $20 per share of Tanox common stock held at closing (about $919 million total).  Tanox shares are no longer traded on the NASDAQ exchange.

Since the mid-1990’s Genentech and Tanox have collaborated with each other and with Novartis on the development and marketing of Xolair® (Omalizumab).  Xolair is an anti-IgE monoclonal antibody approved for treatment of patients with moderate-to-severe allergic asthma.  Tanox had previously received royalty payments from Genentech and Novartis.  As a result of the merger, Genentech eliminates the cost of this royalty and acquires Novartis’ profit share and royalty payments which Novartis previously paid to Tanox.