The strategic move will enable Roche Holding AG to add Foundation Medicine’s portfolio of drugs to its basket of cancer treatments. FMI’s molecular insights will also enable Roche to create and develop new cancer treatments.
On Tuesday, Swiss drugmaker Roche Holding AG stated it has agreed to acquire Foundation Medicine (FMI) for $2.4 billion and has agreed to pay $137 for every FMI share, thus valuing the U.S. genomic profiling group at $5.3 billion.
In a statement both companies have said, the deal has the backing of their respective boards and is set to close in the second half of this year.
Roche Holding AG’s offer price of $137 per FMI’s share represents a 29% premium as of its Monday’s closing price of $106.45.
Cambridge, Massachusetts-based FMI is a molecular information company that specializes in cancer care. It offers genomic profiling (CGP) assays to identify molecular alterations in a patient’s cancer and match them with targeted therapies, immunotherapies and clinical trials.
“This is important to our personalized healthcare strategy as 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,” said Daniel O’Day, Roche pharmaceuticals’ head. “We will preserve FMI’s autonomy while supporting them in accelerating their progress.”
Davis Polk & Wardwell LLP acted as legal counsel to Roche while Citi acted as its financial advisers. Goodwin Procter LLP acted as FMI Special Committee’s legal counsel while Goldman Sachs & Co acted as its financial adviser.