Business

Mass. Movers

Cambridge startup soars on Roche stake

The Roche transaction is subject to approval by Foundation shareholders.
Steffen Schmidt/AP file 2005
The Roche transaction is subject to approval by Foundation shareholders.

Foundation Medicine Inc., a cancer diagnostics startup that develops genomic tests for solid tumors and hematologic malignancies, said giant Roche will spend more than $1 billion for a majority stake in the Cambridge firm. Roche, the world’s largest seller of cancer drugs, said it would use insights into Foundation’s testing of genes of tumor samples to develop drugs and better tailor them for specific groups of patients. In addition, Roche, which operates a large diagnostics business, will sell Foundation tests outside the United States.

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