ZURICH-- Roche Holding AG said Monday that it is acquiring a
California company that develops DNA-sequencing technology as part
of the Swiss pharmaceutical giant's push deeper into
diagnostics.
Basel-based Roche said it would pay $125 million upfront for
Genia Technologies Inc. of Mountain View, Calif. Roche may pay
shareholders of closely held Genia as much as $225 million in
additional payments if certain milestones are reached.
The acquisition comes as Roche seeks to expand its capabilities
in molecular diagnostics. Earlier this year, Roche struck a deal
potentially worth as much as $450 million for the closely held
IQuum, a Massachusetts company that makes molecular diagnostics
testing equipment.
In 2012, Roche walked away from a proposed $7 billion deal to
buy Illumina Inc., a U.S. gene-sequencing group, because the target
company sought a higher price.
DNA sequencing is the process of decoding a person's genetic
makeup. The technology is considered to have huge potential for
delivering personalized medicines.
Genia's technology is expected to cut the price of DNA
sequencing while increasing the speed of the process. Roche said
Genia will be integrated into its sequencing unit when the
transaction is completed.
Write to Neil MacLucas at neil.maclucas@wsj.com
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