Roche snaps up cancer drugmaker for $1.7 billion

Shares of US oncology focussed firm Ignyta (Nasdaq: RXDX) leapt more than 70% in pre-market trading today, following news of a takeover bid from Swiss pharma giant Roche (ROG: SIX) which is looking to broaden its oncology portfolio, as three top-selling drugs are facing the loss patent protection.

The companies have agreed for Roche, already the world’s largest cancer drug company, to fully acquire Ignyta at a price of $ 27.00 per share in an all-cash transaction. This corresponds to a total transaction value of $ 1.7 billion on a fully diluted basis, according to a company announcement. This price represents a premium of 74% to Ignyta’s closing price on December 21 and a premium of 71% and 89% to Ignyta’s 30-day and 90-day volume weighted average share price on 21 December 2017, respectively. Ignyta shares were trading at $26.78 in mid-morning, up 72% on Thursday’s close.

The merger agreement has been unanimously approved by the boards of Ignyta and Roche, and closing of the transaction is expected to take place in the first half of 2018