Roche Holdings entered into a definitive agreement with Ignyta Inc. (NASDAQ: RXDX) to acquire the biotech company specialized in the oncology field. Under the agreement, Roche agreed to purchase Ignyta at a price of $27.00 per share in cash. Ignyta shares surged 75 percent on Friday.
The total of the agreement comes out to $1.7 billion, representing 74 percent to Ignyta’s closing price on December 21. Roche will also acquire all outstanding shares of Ignyta’s common stock.
California-based Ignyta is testing its entrectinib developed for tumours that harbor ROS1 or NTRK fusions. Currently, the company is ongoing with its phase 2 clinical trial. In interim data, entrectinib demonstrated a 78 percent objective response rate.
“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.
“We are excited that Roche, the global leader in both oncology and personalized healthcare, recognises this powerful approach and shares our passion for advancing entrectinib for the benefit of patients.” said Jonathan Lim, Ignyta’s CEO and Co-Founder.
The closing of the transaction is expected to take place in the first half of 2018.