Roche buys US Foundation Medicine for $2.4 bn

Geneva: Swiss pharmaceutical giant Roche said Tuesday it had reached an agreement to purchase the remaining shares of US lab Foundation Medicine, of which it already holds a majority stake, for $2.4 billion.

Roche said it had agreed to pay shareholders in the US company, which is specialised in molecular analysis and genomic profiling aimed at transforming cancer care, $137 per share.

This represents a 29-percent premium on the closing price for Foundation Medicine (FMI) Monday evening and a 68-percent premium on the company’s 90-day weighted average share price, Roche said.

The overall transaction thus amounts to $2.4 billion, with FMI, of which Roche already held a 57-percent stake, valued at $5.3 billion, the statement said.

The boards of both companies have unanimously approved the merger agreement.

Roche, the world’s top cancer drug maker, said it aimed to close the deal by the end of the year.

“This is important to our personalised healthcare strategy,” said Daniel O’Day, head of Roche’s pharmaceutical unit.

“We believe molecular insights and the broad availability of high quality comprehensive genomic profiling are key enablers for the development of, and access to, new cancer treatments,” he said in the statement.

FMI, which is based in Cambridge, Massachusetts, will continue to function as an autonomous entity, he said.

Analysts hailed the deal, with Stefan Schneider of Vontebel saying it “fit very well with Roche’s personalised healthcare strategy.”

He pointed out in an investment note that the Swiss company was an “early leader in the field”.

Investors too appeared pleased with the move.

Following the announcement, Roche saw its share price rise 0.79 percent in midday trading to 211.65 Swiss francs a piece, as the Swiss stock exchange’s main SMI index slipped 0.66 percent.

  • Related Posts

    • Pharma
    • January 14, 2025
    • 9 views
    Stop Diseases in their Tracks early on-Dr Aakaar Kapoor

    New Delhi:  Most diseases stealthily make way into your body and catch you unawares, hence have earned the nickname of being silent. You know it when they assume serious proportions.…

    • Pharma
    • January 14, 2025
    • 13 views
    Pharmacy Council Of India Fixes Staff To Students Ratio For B.Pharm As 1:20

    New Delhi:  The Pharmacy Council of India (PCI) has stipulated that the staff to student ratio for Bachelor of Pharmacy (B.Pharm) courses should not exceed 1:20 in theory classes and…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Stop Diseases in their Tracks early on-Dr Aakaar Kapoor

    Stop Diseases in their Tracks early on-Dr Aakaar Kapoor

    Pharmacy Council Of India Fixes Staff To Students Ratio For B.Pharm As 1:20

    Pharmacy Council Of India Fixes Staff To Students Ratio For B.Pharm As 1:20

    Some Homeopathic Products May Put You At Risk: FDA

    Some Homeopathic Products May Put You At Risk: FDA

    Controversial Saline: Questions Raised On The Quality Of West Bengal Pharmaceutical Firm

    Controversial Saline: Questions Raised On The Quality Of West Bengal Pharmaceutical Firm