Roche in up to $1.1 billion drug development deal with Aileron; acquires BioImagene for $100 million

Switzerland's Roche (SIX: ROG.VX), is entering a deal with US company Aileron Therapeutics worth up to $1.1 billion, giving it access to a new way of targeting diseases, reported the Reuters news service from Zurich.

Aileron, which has built up a preclinical pipeline focusing on cancer, infectious disease, metabolic disease and immune and inflammatory diseases, is set to get an upfront payment of $25 million. It will receive up to $1.1 billion in payments if drug candidates are successfully developed against five targets, as well as royalties on any future sales. The companies have not disclosed the targets but Reuters say that Roche has stated it would be selected from its key therapeutic areas, which include oncology, virology, inflammation, metabolism and central nervous system.

Additionally, Roche, the global leader in cancer drugs, is buying privately-held California, USA-based digital pathology laboratory solutions firm BioImagene for $100 million, aiming to strengthen its foot print in tissue-based cancer diagnostics. The transaction, which is being effected through Roche's Ventana Medical Systems subsidiary, is subject to customary closing conditions and is expected to complete in the coming weeks.