World Economy

Roche Takes Majority Stake in US Medicine Co.

Roche Takes Majority Stake in US Medicine Co.Roche Takes Majority Stake in US Medicine Co.

Swiss pharmaceutical giant Roche said Monday it would invest nearly $1.2 billion for control of US molecular and genomic analysis firm Foundation Medicine, in a bid to boost its personalized cancer  treatment offerings.

Roche said it aimed to buy up to 56.3 percent of the US company, paying shareholders $50 per share, or a total of $780 million, AFP reported.

In addition, the Swiss group said in a statement it planned to buy five million newly issued FMI shares, for a total of $250 million.

Roche hailed FMI’s “pioneering approach to genomics and molecular information”, saying the deal would allow it to provide faster cancer identification and better personalized treatment.

“Understanding the comprehensive genomic profile of a cancer patient’s disease will enable better personalized healthcare solutions to optimize treatment outcomes for patients,” the Swiss company said.

As part of the deal, Roche has agreed to spend around $150 million funding FMI’s cancer research and development efforts for at least five years.

The FMI board has already unanimously approved the deal, Roche said, adding that it expected the agreement to be finalized during the second quarter this year.

As part of the agreement, Roche will market the tests outside the US and support Foundation’s commercial efforts in the US, Dr. Pellini said.

In a statement, Daniel O’Day, chief operating officer of Roche’s Roche Pharma unit, said combining Foundation’s genomic and molecular information with Roche’s expertise in oncology will enable the companies to “bring personalized health care in oncology to the next level.”