Bengaluru – Swiss drug maker, Roche Holding AG (ROG.S), will buy U.S. cancer drug maker, Ignyta Inc., for 1.7 billion dollars to broaden its oncology portfolio globally, the companies has said.
Roche will pay 27 dollars per share for Ignyta, representing a premium of about 74 per cent to the stock’s closing price on Thursday, according to the company.
Ignyta will continue its operations in San Diego and will be responsible for the ongoing pivotal study of entrectinib, its most advanced drug.
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.
The media reported on Thursday that Ignyta was in advanced talks to sell itself – three years after it went public with focus on precision drugs and diagnostics.
The deal is expected to close in the first half of 2018, the companies said.
Citi advised Roche on the deal, while BofA Merrill Lynch and J.P. Morgan Securities LLC advised Ignyta.
Sidley Austin LLP and Latham & Watkins LLP were legal counsel to Roche and Ignyta, respectively.