The oncology portfolio of Swiss drug maker Roche would be enhanced after it completes its purchase of U.S. cancer drug specialist Ignyta Inc. The agreement of the deal which is worth $1.7 billion was announced by both the companies in a joint statement on Friday.
The companies said that about 74 percent premium to the price of the shares of Ignyta on the closing price on Thursday would be paid by Roche for a value of $27 per share for Ignyta.
There had been media reports earlier speculating the deal and reports of advanced talks between being held by Ignyta to sell itself had been doing the rounds of the market for a few days now. Ignyta had gone pubic just about three years ago and its business focus is on developing and manufacturing precision drugs and diagnostics.
Entrectinib is the most advanced drug of Ignyta and the company would continue to efforts to tae it to its logical end. It has been decided that the U.S. company would continue to operate from its present headquarters in San Diego.
A group of drugs that make use of gene therapy for eliminating the underlying diseases which foster growth of cancer tumor are being developed by the U.S. company and most of them are in their early stages of development.
“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 the company’s pharmaceuticals head, Daniel O‘Day.
The companies said that they expected the deal to come to a close by the first half of 2018.
There has bene a fall of 0.3 per cent in the price of Roche stocks which is in line with the fall in the overall European pharma sector
Roche’s strategy of making bolt-on acquisitions, said Zuercher Kantonalbank analyst Michael Nawrath and added that the company was not paying more than required for the deal.
“The data speak for themselves. We expect approval in the first half of 2019 and this could become a blockbuster given the wide field of use,” he wrote in a research note, keeping his “market weight” rating.
The ability of treating cancer with the help of specific mutations through the use of precision medicines which would be used along with diagnostics, would be enhanced for Roche byb the acquisition of Ignyta, said Bank Vontobel analysts.
(Source:www.reuters.com)
The companies said that about 74 percent premium to the price of the shares of Ignyta on the closing price on Thursday would be paid by Roche for a value of $27 per share for Ignyta.
There had been media reports earlier speculating the deal and reports of advanced talks between being held by Ignyta to sell itself had been doing the rounds of the market for a few days now. Ignyta had gone pubic just about three years ago and its business focus is on developing and manufacturing precision drugs and diagnostics.
Entrectinib is the most advanced drug of Ignyta and the company would continue to efforts to tae it to its logical end. It has been decided that the U.S. company would continue to operate from its present headquarters in San Diego.
A group of drugs that make use of gene therapy for eliminating the underlying diseases which foster growth of cancer tumor are being developed by the U.S. company and most of them are in their early stages of development.
“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 the company’s pharmaceuticals head, Daniel O‘Day.
The companies said that they expected the deal to come to a close by the first half of 2018.
There has bene a fall of 0.3 per cent in the price of Roche stocks which is in line with the fall in the overall European pharma sector
Roche’s strategy of making bolt-on acquisitions, said Zuercher Kantonalbank analyst Michael Nawrath and added that the company was not paying more than required for the deal.
“The data speak for themselves. We expect approval in the first half of 2019 and this could become a blockbuster given the wide field of use,” he wrote in a research note, keeping his “market weight” rating.
The ability of treating cancer with the help of specific mutations through the use of precision medicines which would be used along with diagnostics, would be enhanced for Roche byb the acquisition of Ignyta, said Bank Vontobel analysts.
(Source:www.reuters.com)
