Roche buys Ignyta for US$1.7bn

ROCHE has agreed a deal to buy oncology drug company Ignyta for US$27/share, a total of US$1.7bn.

Ignyta is based in San Diego, California, US and focuses on precision medicine to test, identify and treat cancer with rare mutations. Its lead drug is entrectinib, an oral tumour treatment targeting two specific mutations in small cell lung cancer and various solid tumours.

“Cancer is a highly complex disease and many patients suffer from mutations which are difficult to detect and treat. 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 Daniel O’Day, CEO Roche Pharmaceuticals.

Both boards of directors have unanimously approved the deal, which represents a 74% premium on Ignyta’s closing share price on 21 December. Roche will now commence a tender offer for all outstanding shares of Igntya’s common stock.

Once the takeover is complete, expected in the first half of 2018, Ignyta will continue to operate in San Diego.