Roche to Buy Ignyta for $1.7 Billion
December 22 2017 - 2:10AM
Dow Jones News
By Carlo Martuscelli
Roche Holding AG (ROG.EB) said Friday that it had agreed to
acquire cancer-therapy company Ignyta Inc. (RXDX) for $1.7
billion.
Swiss healthcare company Roche said it would acquire all shares
of Ignyta at a price of $27 a share in an all-cash transaction.
This is a 74% premium on Ignyta's closing share price on Dec. 21,
Roche said. The deal is expected to close in the first half of
2018.
The transaction has been unanimously approved by the boards of
both companies.
Under the terms of the offer, Roche will buy all outstanding
shares of its target and Ignyta will recommend that shareholders
sell their stock to Roche.
Ignyta is developing entrectinib, a compound that is being
tested for the treatment of tumors and is currently undergoing a
phase 2 clinical trial. Entrectinib targets tumors that display one
of two gene rearrangements: ROS1 fusions in non-small cell lung
cancer, and NTRK fusions across a broad range of solid tumors.
"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," Roche Chief Executive
Daniel O'Day said.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
December 22, 2017 01:55 ET (06:55 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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