Roche's $43.7 billion offer to buy Genentech may not be the last one, Birgit Kulhoff, pharmaceuticals analyst at Rahn & Bodmer told CNBC Monday.
Swiss-based pharmaceutical company Roche, which already owns 55.9 percent of Genentech , is offering $89 per share to buy up the remaining stake, a 9 percent premium to the biotech company's closing share price on Friday.
"I think for Roche this proposed deal at least at the current terms is positive, for Genentech I think they probably will not be too happy because it really gives rather low valuation to Genentech," Kulhoff told "Worldwide Exchange." "I think we might see higher bids in the end."
A combined entity would have a bigger marketing clout, would cooperate better in research and development and would lower costs, she said.
"In the end it could make sense, but of course that all depends on the price," Kulhoff said.
It will be very important for Roche to maintain the culture of research and development at Genentech and to keep the innovation there going, she added.
Consolidation might continue with pharmaceutical companies buying biotech firms, as the valuations of biotech companies are still reasonable, Kulhoff said.
"That could be the start of a bigger M&A wave," she added.