Swiss pharmaceutical giant Roche announced Friday it is buying San Diego precision cancer therapy developer Ignyta for $1.7 billion.
The $27 per share all-cash offer represents a 74 percent premium over the closing price of Ignyta stock on Thursday.
In announcing the acquisition, Roche cited Ignyta’s promising development of the drug entrectinib, which targets two types of tumors, and is now in the second phase of clinical trials.
“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 of Roche Pharmaceutical.
Ignyta was founded in 2011 to develop precision diagnostics and therapies for patients suffering from rare forms of cancer. The company’s operations will remain in San Diego.
“Ignyta has been singularly focused on developing precisely targeted therapeutics guided by diagnostics for patients with rare cancers. We are excited that Roche, the global leader in both oncology and personalized healthcare, recognizes this powerful approach and shares our passion for advancing entrectinib for the benefit of patients,” said Jonathan Lim, chairman, CEO and co-founder.
The Roche Group, headquartered in Basel, Switzerland, is active in over 100 countries and employs more than 94,000 people.