One year. That's how long Illumina CEO Jay Flatley has to prove he can increase his company's value beyond Roche's $6.7 billion takeover bid, Maxim Group analyst Bryan Brokmeier tells Bloomberg.
As our sister publication GenomeWeb Daily News reports, Roche this week said it would not extend its $51-per-share cash tender offer, ending its bid for the firm for now. GWDN adds that Illumina's shareholders this week voted on four Illumina board member slots "as well as a move by Roche to amend Illumina's bylaws in order to expand the San Diego company's board." Illumina said its shareholders re-elected board members including Flatley, Chairman William Rastetter, Blaine Bowman, and Karin Eastham.
Maxim Group's Brokmeier tells Bloomberg that to make it tougher for Roche to gain control of his firm's board at its 2013 shareholder meeting, Flatley "must introduce new products, either in-house or through acquisitions, and expand sales to get the shares rising."
Brokmeier goes on to add that Roche's recent move — to let its tender offer expire — does not signal the end of its bid. "They may come back with an offer if Illumina shares don't move higher and shareholders see they shouldn't have walked. Or if Illumina comes out with better news on its pipeline and greater information," he tells Bloomberg.