Roche splashes $1.7B in cash for Ignyta and entrectinib

Modesto Morganelli
Dicembre 22, 2017

Swiss drugmaker Roche will buy US cancer drug specialist Ignyta Inc. for $1.7 billion in an agreed deal to broaden its oncology portfolio, the firms said on Friday.

Ignyta will continue to operate in San Diego and be responsible for the ongoing pivotal study of entrectinib, a move which mirrors the autonomy given to Genentech, the neighbouring biotech giant Roche bought in 2009.

The Swiss big pharma group is paying $27 per share in cash for Ignyta to claim ownership of entrectinib, a tropomyosin receptor kinases (TRK) inhibitor that shuts down a range of tumour-associated pathways including ROS1 and NTRK.

The U.S. company has a suite of drugs in early stage development that use gene therapy to kill off the underlying diseases that drive cancer tumor growth.

Commenting on the transaction, Daniel O'Day, CEO Roche Pharmaceuticals, said, "Cancer is a highly complex disease and many patients suffer from mutations which are hard to detect and treat". The company has a deal with Eli Lilly for the med, but a recent change-up on that pact could see it go back to Ignyta, and now, presumably, Roche. "The agreement with Ignyta builds on Roche's strategy of fitting treatments to patients and will allow Roche to broaden and strengthen its oncology portfolio globally", said the company's pharmaceuticals head, Daniel O'Day. Roche fell 0.6 percent to 245.30 Swiss francs in Zurich.

For Roche, the deal ties in with its current strategy of adding bolt-on acquisitions that add promising candidates into its pipeline without breaking the bank.

"The data speak for themselves".

Roche plans to close the transaction in the first half of next year.

Ignyta has an integrated "Rx/Dx" approach, which combines precision medicines (Rx) and in-house molecular diagnostics (Dx) to help identify and target hard-to-treat mutation-driven cancers in hard-to-find patients. Ignyta used bankers from BofA Merrill Lynch and J.P. Morgan Securities with Latham & Watkins as legal counsel.

Citigroup advised Roche on the deal, while Sidley Austin provided legal advice. Get twice-daily updates on what the St. Louis business community is talking about.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE