Clovis (NASDAQ:CLVS) has always been considered an acquisition target with a “long list” of potential suitors including Eli Lilly (NYSE:LLY), Merck & Co. (NYSE:MRK) , and Roche, Janney tells Bloomberg in an interview.
CEO Patrick Mahaffy has sold other companies including Pharmion, NeXstar Pharmaceuticals.
Clovis closed +12.7% and is up another 7.7% AH. Earlier today the stock jumped when Gilead (NASDAQ:GILD) said it is looking for cancer deals.
Roche (OTCQX:RHHBY) is acquiring a majority of Foundation Medicine (NASDAQ:FMI) for more than $1B, by buying a combination of outstanding and newly issued shares for a 52.4%-56.3% stake on a fully diluted basis.
Foundation is the leader in the growing area of sequencing the genes of tumor samples, looking for mutations that can help predict which drug will be most effective for a particular patient.
Roche (OTCQX:RHHBY, OTCPK:RHHBF) will pay $74/share for InterMune (NASDAQ:ITMN), a 38% premium to its Friday close and 63% higher than Aug. 12 when news of a potential sale emerged.
The deal gives Roche access to pirfenidone, which targets idiopathic pulmonary fibrosis, a disease that causes tissue deep in the lungs to become thick and scarred over time. Analysts predict pirfenidone will generate $1B in global sales by 2019.
Pirfenidone joins Roche’s stable of pulmonary treatments, including Pulmozyme for cystic fibrosis, Xolair for asthma, and in-development asthma drug lebrikizumab. Roche plans to speed pirfenidone’s U.S. start-up and help get insurance coverage for the medicine.
Roche (RHHBY) has announced it will buy Seragon, a breast cancer research company, for $725M. The company may pay up to another $1B based on future performance. Seragon was spun out from Aragon Pharmaceuticals last year, when the latter was purchased for $650M by Johnson & Johnson.
Seragon is the second major acquisition for Roche in the last two months. The company bought Genia Technologies for up to $350M in in June.