Roche paying $2.4B to acquire the rest of US-based Foundation Me - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Roche paying $2.4B to acquire rest of US-based Foundation Medicine

Posted: Updated: Jun 19, 2018 8:09 AM
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Roche has agreed to pay $2.4 billion to acquire the part of -U.S.-based Foundation Medicine that the Swiss drugmaker does not already own, the companies announced Tuesday.

The acquisition of the Cambridge, Massachusetts-based company, which specializes in using genomic profiling to treat cancers, continues Roche's effort to tap into promising biotechnology as a strategy to drive financial growth.

Endorsed by both companies' boards of directors, the agreement is worth $137 per share in cash, a nearly 29% premium to the $106.45 closing price of Foundation Medicine's (FMI) shares on June 18, the companies said.

The deal, scheduled to wrap up in the second half of 2018, represents a total company value of $5.3 billion on a fully diluted basis, the companies said.

"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, Roche CEO Daniel O'Day said in a statement issued with the announcement.

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Troy Cox, Foundation Medicine's CEO, said partnering with Roche would increase patient access to the U.S. company's full suite of comprehensive genomic profiling to identify alterations that cause cancer.

Foundation Medicine's shares soared 28.2 percent higher, to $136.45, in late morning trading Tuesday.

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc

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