Last week Roche Holdings (VTX:ROG) agreed to buy Foundation Medicine (NASDAQ:FMI) from its shareholders. Roche already held 57% of the outstanding shares of Foundation. The remaining shares will be bought back through a tender offer of $137 per share. This represents a 29% premium to FMI’s closing price of $106.45 of June 18th and a 68% premium to FMI’s 90-day weighted average share price.
The CEO of Roche Pharmaceuticals Daniel O’Day commented on the deal: “This is important to our personalized healthcare strategy as we believe molecular insights and the broad availability of high quality comprehensive genomic profiling are key enablers for the development of, and access to, new cancer treatments. We will preserve FMI’s autonomy while supporting them in accelerating their progress.” Since the announcement of this deal, shares of FMI are trading at $136.5, representing the market's confidence that the deal will go through.
Written by John Martin, Edited by Alexander Fleiss
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