In an Effort to Bolster Cancer Treatments, Roche Buys Majority Stake in Foundation Medicine

Swiss pharmaceutical company Roche Holding said it is taking a majority stake in U.S. based-Foundation Medicine in a deal worth more than $1 billion. Roche will buy 15.6 million shares in Foundation Medicine for about $780 million and 5 million newly-issued shares for $250 million. Roche says the partnership includes a research and development collaboration with the potential for more than $150 million in funding to accelerate Foundation Medicine’s new product development initiatives, optimize treatment for oncology patients and better design and understand the results of clinical trials based on molecular information. Foundation Medicine will retain operational independence and its president and chief executive Michael Pellini will remain at the company’s helm.

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