It's still the beginning, and the beginning is when you have to be tough.

It is a good marketing tool that the FDA has approved it, so I am quite sure they will make some inroads in the U.S. That is for sure.

The jewels are the vaccines business and blood testing. There's nothing about Chiron that makes you say 'wow, we need to buy this for the pipeline.' The portfolio is rather lackluster compared to other biotechnology companies.

There may be one or two dollars more in the bid but I think the price does reflect the business. If they had a fantastic product in late-stage testing, you'd offer more but you don't make a spectacular bid for a company that's not spectacular.

But the magnitude of the cap-ex revision clearly signals not just a recovery but that foundries are beginning to take a significantly larger role in manufacturing.

It's really where we wanted to be at the beginning. We're very pleased with the start we've had because it was a big investment on the church's part.