Roche denies raising money to acquire BioMarin Pharmaceuticals

Swiss drug maker Roche Holding AG denied media reports that it is seeking to raise $15 billion in debt financing to acquire BioMarin Pharmaceuticals, a drugmaker that specialises in treating rare diseases.

Citing people familiar with the situation, DealReporter yesterday reported that Roche will pay $95 to $105 a share for BioMarin, valuing the Novato, California-based company at about $13.5 billion based on a $95 a share bid.

Severin Schwan, CEO of Roche told Bloomberg in an interview that his company was not raising financing for an acquisition. ''We don't have a need to raise capital,'' he said, and added that investors were asking as to what the company would do with its $3.9 billion cash at hand.

BioMarin specialises in drugs for the treatment of rare diseases, including mucopolysaccharidosis VI (MPS VI), a rare, life-threatening lysosomal storage disorder.

BioMarin also has in the pipeline Vimizim for Morquio A Syndrome, PEG-PAL for PKU, BMN-701 for Pompe disease, BMN-673 for genetically-defined cancers and BMN-111 for achondroplasia.

The company generated revenues of $500 million last year and analysts expect that to increase by at least 20 per cent in 2014 and 2015.

Bloomberg had reported in July that Basel, Switzerland-based Roche is seeking financing for buying Connecticut-based Alexion Pharmaceuticals. (See: Swiss drugmaker Roche eyes Alexion Pharmaceuticals)

With a market cap of $22.3 billion, Alexion is a biopharmaceutical products maker that develops life-transforming therapeutic drugs.