By Ron Shinkman, Editor, Laboratory Industry Report
Foundation Medicine and pharmaceutical giant Roche have closed their $1.03 billion strategic transaction, the two companies have announced this week.
Under the terms of the deal, Roche has purchased 15.6 million shares from the Massachusetts-based Foundation at the price of $50 per share. Roche also purchased another 5 million shares newly issued by Foundation, for gross proceeds of $250 million. The company also was granted three new seats on the now eight-member board of directors.
“With this transaction closed and our balance sheet strengthened, we’re eager to begin working with Roche to advance research and innovation, accelerate new product development and expand our commercialization efforts, all with the common goal of driving a transformation in cancer care,” said Foundation Chief Executive Officer Michael Pellini, M.D., in a statement.
The companies said the collaboration will include the joint development of products and services, the distribution of Foundation products outside of the United States, and to increase the visibility of genomic profiling.
Roche said that it would provide up to $150 million to speed up Foundation Medicine’s product development initiatives and to support additional clinical trials.
“We believe that Roche, in collaboration with Foundation Medicine, has a unique opportunity to optimize the development of and access to novel treatment options for cancer patients and to advance personalized healthcare in oncology,” said Daniel O’Day, chief operating officer of Roche’s pharmaceuticals division, in a statement.