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news.Swiss drugmaker Roche is investing $1.03bn to acquire a 56.3% stake in US-based Foundation Medicine to get access to genomic tests for screening tumors as well as to develop a new generation of treatments to combat cancer.
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The collaboration will further advance FMI’s position in molecular information and genomic analysis while providing Roche an opportunity to optimize the identification and development of new treatment options for cancer patients.
The Swiss firm will tender for about 15.6 million Foundation Medicine shares at $50 per share with an aggregate value of about $780m and also invest $250m in Foundation to acquire five million newly issued shares at $50 per share.
Roche Pharma COO Daniel O’Day said: "By combining FMI’s pioneering approach to genomics and molecular information with Roche’s expertise in the field of oncology, we can bring personalized healthcare in oncology to the next level."
As part of the deal, Roche is committing to R&D funding of more than $150m for a minimum of five years as well as contribute its expertise and breadth in oncology, while FMI will continue to operate independently and contribute its experience in the development of genomic profiling tests for oncology.
Initially, the R&D collaboration will focus on developing genomic profile tests for cancer immunotherapies and for continuous blood-based monitoring.
The R&D funding will accelerate FMI’s new product development initiatives, optimize treatments for oncology patients, and better design and understand the results of clinical trials based on molecular information, as well as commercial collaboration agreements aimed at expanding the global sales efforts for FMI’s existing and future products.
Foundation Medicine president and chief executive officer Michael Pellini said: "We are excited to announce this strategic collaboration with Roche, which will help accelerate our business, and importantly, represents significant potential for individuals with cancer around the world.
"We believe that putting molecular information at the center of cancer care will help transform the delivery of care for patients and speed the pace of drug discovery and development."
The company said that transaction is scheduled to be completed in the second quarter of 2015.
Image: Roche site in Basel, Switzerland. Photo: courtesy of F. Hoffmann-La Roche Ltd.