The giant Swiss drug maker Roche is ponying up $2.4 billion for the rest of Cambridge-based Foundation Medicine, a cancer-focused gene-sequencing company that recently won approval for a diagnostic test aimed at personalizing cancer care.
Roche, which already held a stake of more than 50 percent in Foundation, is acquiring the firm’s outstanding shares at a price of $137 per share in cash. That’s a premium of 29 percent to Foundation’s closing price Monday and values the firm at $5.3 billion. The deal, which was approved by the boards of both publicly traded companies, is expected to close in the second half of this year, the partners said in a statement.
In November, federal regulators approved a diagnostic test by Foundation called FoundationOne CDx that can detect all four classes of alterations in 324 cancer-related genes that cause solid tumors. That includes tumors found in the lung, colon, breasts, ovaries, and — in cases of melanoma — skin.
In March, the Centers for Medicare & Medicaid Services authorized Medicare to pick up the cost of the test, which is expected to be several thousand dollars for each patient.
Troy Cox, chief executive for Foundation, said this week that it and Roche “share the philosophy that every cancer patient should have access to personalized care informed by validated molecular information.”Jonathan Saltzman can be reached at email@example.com.