The California-based biopharmaceutical company will merge with Roche in a deal worth $1.7 billion.
Roche and California-based biopharmaceutical company Ignyta have agreed to merge. As part of the deal, Roche will acquire Ignyta shares at $27.00 each for a total of approximately $1.7 billion. Roche will commence a tender offer, to acquire all outstanding shares of Ignyta common stock, and Ignyta will file a recommendation statement containing the unanimous recommendation of the Ignyta board that Ignyta’s shareholders tender their shares to Roche.
The closing of the deal will occur if a majority of Ignyta’s outstanding shares are tendered in the offer, the expiration or termination of the waiting period under the Hart Scott-Rodino Antitrust Improvements Act of 1976 takes place and other customary conditions are met. The transaction is expected to be finalized in the first half of 2018.
Ignyta is focused on precision oncology medicine and has focused on the investigation, identification, and treatment of cancers caused by rare genetic alterations. Roche is interested in its lead candidate entrectinib, an orally bioavailable, central nervous system -active tyrosine kinase inhibitor being developed for tumors that harbor ROS1 or NTRK fusions. Specifically, entrectinib 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. An ongoing pivotal phase 2 clinical trial will support, if successful, dual NDA submissions, according to Roche. Ignyta will continue its operations in San Diego and continuing to conduct the ongoing study of entrectinib.
“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 Pharmaceuticals.
Added Jonathan E. Lim, Ignyta’s Chairman, CEO and Co-Founder: “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.”