Roche Pharmaceutical Company has acquired the rest of the cancer-genetics company Foundation medicine that it didn’t own. The company acquired the part of shares that it did not own to conclude a dramatic takeover of the cancer data companies.
This comes a few months after the Swiss pharmaceuticals giant acquired another company based in New York for $1.9 billion. The company was a startup called Flatiron Health which primarily deals with collecting clinical data from cancer such as the medication they have taken and the responses they get from the medication.
Roche Pharmaceuticals CEO Daniel O’Day was interviewed by the journalism website Business Insider on the two deals and gave more information on how the acquisition came to be.
O’Day gave the details of how Roche and the two companies have had very stable relationships. Apparently, Roche’s Genentech has been one of Flatiron’s clients back in 2013 so they interacted there. Flatiron was seeking for funding and that is where O’Day became more involved with Flatiron.
Foundation had been in talks with Roche Pharmaceuticals for funding for a couple of years that prior to the acquisition. Since Roche had a majority stake in Foundation Medicine, getting to agree a deal was an easy task.
The acquired companies will have autonomy with Roche Pharmaceuticals in order to maintain efficient running and competitiveness. O’Day said in the interview with Business Insider that the two companies have different cultures and operating environments and therefore they needed to function on their own.
He stressed that the autonomy will allow the company to work with other cancer data collecting companies in order to improve its success. He further added that Foundation, being a pioneer in the data collection field, is supposed to set the trend and work with other cancer data collecting companies to improve knowledge in this field.
The acquired companies will aid Roche pharmaceuticals in several ways. One way is by providing data to the drug makers about what drug works and which one doesn’t.
Roche Pharmaceuticals is set to benefit largely from these acquisitions in the coming future.