Roche acquires Piramed

Under the terms of the agreement, Roche acquired 100% of Piramed’s shares for $160 million, plus a milestone payment of $15 million, which is due upon the commencement of Phase II clinical trials for the company’s oncology program.

The final transaction value will be adjusted by the net cash balance remaining upon closing. Closing of the transaction is subject to standard conditions including review by anti-trust authorities. The completion is expected during the second quarter of 2008.

Through this acquisition, Roche’s R&D pipeline is said to be strengthened by Piramed’s two major research programs targeting PI3-K-alpha in oncology and PI3K-delta in inflammatory disease. The PI3-K-alpha program has a compound in Phase I of clinical development and is currently being developed in collaboration with Genentech, in whom Roche has a majority ownership interest. The previously unpartnered PI3-K-delta program, while at a pre-clinical stage, will be integrated into the Roche Group’s inflammatory R&D portfolio.

William Burns, CEO of Roche’s Pharmaceuticals Division, said: “The integration of Piramed’s promising research and development reaffirms and further strengthens Roche’s leadership in oncology. In addition, this acquisition augments our research efforts in debilitating diseases such as rheumatoid arthritis.”