Roche to Pay $1.7 Billion for Ignyta
Roche is planning to buy US group Ignyta for around $1.7 billion in an all-cash deal that will expand the Swiss group’s portfolio of cancer medicines.
San Diego, California-based Ignyta is focused on precision oncology medicines that seek to identify and treat patients with cancers carrying specific rare mutations. Its lead molecule is entrectinib, an orally bio-available, CNS-active tyrosine kinase inhibitor being developed for tumors that harbor ROS1 or NTRK fusions.
Under the terms of the merger agreement, Roche will promptly commence a tender offer to acquire all outstanding shares of Ignyta common stock at $27 per share. Igynyta’s board has unanimously recommended that its shareholders accept the offer. The transaction, which also remains subject to antitrust and other customary closing conditions, is expected to complete in the first half of 2018.
Ignyta will continue its operations in San Diego and be responsible for the ongoing pivotal study of entrectinib, which targets tumors with one of two genetically defined gene rearrangements: ROS1 fusions in non-small cell lung cancer (NSCLC) and NTRK fusions across a broad range of solid tumors.
The experimental drug is currently being assessed in a Phase II clinical trial, which, if successful, will support new drug application (NDA) submissions in NTRK tumor-agnostic and ROS1 NSCLC. Entrectinib has been granted PRIME designation by the European Medicines Agency (EMA) and Breakthrough Therapy status by the US Food and Drug Administration (FDA).
“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 the Basel-headquartered company.
