ZURICH / LONDON (Reuters) – Swiss pharmaceutical company Roche ( ROG.S ) is paying $ 2.4 billion to buy the rest of Foundation Medicine (FMI) ( FMI.O ]), increasing its commitment to the ability of the EE genomic profile group. UU to personalize cancer care.
The agreement, backed by the boards of both companies, is worth $ 137 per share , a 29 percent premium for the closing price of the IMF on Monday – valuing the company based in Cambridge, Massachusetts, at $ 5.3 billion.
The transaction will close in the second half of this year, the partners said in a statement on Tuesday.
It is the latest in a series of closed acquisitions by Roche, as the world's largest cancer drug marker seeks to take advantage of the promising technology developed by biotechnology companies to drive future growth as their drugs become more old ones face competition.
Earlier this year, agreed to buy the rest of the American cancer data company Flatiron Health for $ 1.9 billion in similar treatment. Both purchases reflect their success in taking control of the Genentech biotech company, based in California, 28 years ago.
FMI develops tests to help Doctors understand the genetic profile of patients' tumors and guide them towards effective therapies.
Vontobel analyst Stefan Schneider said that the agreement fitted very well with Roche's position as one of the first leaders in equating treatment with genetic profiles.
"This is not only an advantage for patients, it should also allow Roche to have more effective and specific drugs, which should improve drug development and, ultimately, the pricing power", He said.
Daniel O & # 39; Day, Roche's director of pharmaceutical products, said the technology was "important to our personalized healthcare strategy because we believe that the molecular knowledge and broad availability of high-quality, comprehensive genomic profiles are key facilitators for the development of new cancer treatments. "
FMI develops analysis of complete genomic profiles to identify molecular alterations in a patient's cancer and relate them to targeted therapies, immunotherapies, and clinical trials.
The Swiss group said that it is planned to preserve the IMF's autonomy within Roche's larger group, reflecting the quasi-independence approach that pioneered Genentech.
Roche bought for the first time a 56 percent stake in FMI for $ 1 billion in 2015, so it has already seen investment in value grow.
But it has a long way to go to match the creation of value achieved at Genentech, where Roche bought 60 percent of the company for only $ 2.1 billion in 1990 and enjoyed a series of highly successful drugs . Roche finally bought minority investors in Genentech in 2008 for $ 47 billion.
Citi ( C.N ) acts as financial advisor to Roche and Davis Polk & Wardwell LLP is a legal advisor to Roche. Goldman Sachs & Co ( GS.N ) is a financial advisor to the Special Committee of the IMF and Goodwin Procter LLP is a legal advisor.
Edited by Stephen Coates and Keith Weir