Skip to content
Subscriber Only

Roche Plans $1 Billion Stake in Foundation Genomics Firm

Updated on

Roche Holding AG plans to pay more than $1 billion for a majority stake in Foundation Medicine Inc. to get access to genomic tests for screening tumors and to develop a new generation of treatments for fighting cancer.

Roche will buy 5 million new shares of Cambridge, Massachusetts-based Foundation for $50 each and make an offer to purchase stock from existing investors for the same price to take its stake to as much as 56 percent, the companies said in a statement today. The offer values Foundation shares at more than double their closing price last week.