Is the FTC about to force Roche to divest a key hemophilia program before green-lighting Spark buyout?
Mizuho Securities analyst Difei Yang has been consulting with the FTC experts at Allen & Overy over Roche’s long-delayed $4.3 billion Spark Therapeutics buyout. And he’s increasingly sure that all the signs are pointing to a clear demand from regulators that would force a divestiture on the hemophilia A side of the pipeline.
The latest analysis centers on the track record at the FTC when they issue a second request for information, which is an extremely rare event that happens in 1 out of 50 M&A cases. Roche got their second request in June. In those instances, the numbers show that there’s an 80% chance that a divestiture demand is coming. And this one could be particularly painful for Roche to accept.
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