Roche and Ignyta, a San Diego, California-based biopharmaceutical company, have signed a merger agreement under which Roche will acquire Ignyta for $27.00 per share or approximately $1.7 billion.

Ignyta is focused on precision oncology medicine and specializes in the investigation, identification, and treatment of cancers caused by rare genetic alterations. Entrectinib, Ignyta’s most advanced investigational drug, is an orally bioavailable central nervous system active tyrosine kinase inhibitor designed to target tumors with ROS1 or NTRK fusions.

Under the terms of the merger agreement, Roche will commence a tender offer, to acquire all outstanding shares of Ignyta common stock, and Ignyta will file a recommendation statement containing the unanimous recommendation of the Ignyta board that Ignyta’s shareholders tender their shares to Roche.

The closing of the tender offer is subject to a majority of Ignyta’s outstanding shares being tendered in the tender offer. In addition, the transaction is subject to the expiration or termination of the waiting period under the HartScott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Following completion of the tender offer, Roche will acquire all remaining shares at the same price of $27.00 per share through a second-step merger. The closing of the transaction is expected to take place in the first half of 2018.

Source: Roche