SAN DIEGO (AP) -- Swiss drugmaker Roche Holding AG said Friday that it had launched its $5.7 billion tender offer for diagnostics company Illumina Inc.
San Diego-based Illumina said, meanwhile, its board of directors is reviewing Roche's unsolicited buyout proposal and plans to tell shareholders its formal position within 10 business days.
The announcements came a day after Illumina said it had adopted a "poison pill" takeover defense in response Roche's overtures.
Illumina makes systems that analyze an individual's DNA, a field that has enormous potential for health care and the medical industry.
Roche has said that an acquisition of Illumina would strengthen its position in diagnostics because the companies' technologies are complementary. Roche, which specializes in cancer diagnosis and diabetes management, put forth a proposed bid of $44.50 per share. That is a 64 percent premium to Illumina's stock price on Dec. 21, the day before rumors began circulating that Roche might make an offer for the company, Roche said.
The tender offer is set to expire on Feb. 24, unless extended.
Illumina advised its stockholders to take no action while the company's board reviews the Roche offer. It said it will postpone reporting its fiscal fourth-quarter and full-year financial results, and plans to issue those results along with its recommendation on Roche's proposal.
Illumina's stock dropped 47 cents to $52.18 in afternoon trading.
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