NEW YORK, NY / ACCESSWIRE / June 20, 2018 / Shares of Foundation Medicine exploded on Tuesday after announcing that it has entered into a definitive merger agreement for Roche to acquire the outstanding shares of FMI`s common stock not already owned by Roche and its affiliates at a price of US$ 137.00 per share. Shares of Solid Biosciences also broke out after announcing that the FDA has lifted a clinical hold on the company's phase I/II trial, IGNITE DMD, for its experimental candidate, SGT-001.
RDI Initiates Coverage on:
Foundation Medicine, Inc.
Solid Biosciences Inc.
Foundation Medicine, Inc. shares closed up 28.46% on Tuesday, with about 6.3 million shares traded compared to an average trading volume of about 409,00 shares. The stock hit a new high of $137.20 after it was revealed that Swiss drug maker Roche will pay $2.4 billion to buy the rest of the cancer expert company. Boards of both companies are baking the deal which has a worth of $137 a share. The deal values the company at $5.3 billion and is set to close in the second half of the year. FMI develops, manufactures and sells genomic analysis diagnostics for solid and circulating cancers. According to Vontobel analyst Stefan Schneider, "This isn't only an advantage for the patients, but also should allow Roche to have more effective and targeted drugs, which should improve drug development and ultimately pricing power." Chief Executive Officer for Foundation Medicine, Troy Cox, stated, "Foundation Medicine and Roche share the philosophy that every cancer patient should have access to personalized care informed by validated molecular information. Joining forces with Roche as an independent operating company allows Foundation Medicine to continue its collaboration with Roche, as well as our biopharma partners, to drive ubiquitous access to CGP testing and innovative data services."
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Solid Biosciences Inc. shares closed in the green up 46.36% on Tuesday on a little over 4.1 million shares traded. The stock hit a high of $54.83, just a penny shy of the 52-week high, after it was revealed earlier in the week that the Food & Drug Administration has lifted the clinical hold on the company's phase I/II trial, IGNITE DMD, for its experimental candidate, SGT-001. SGT-001 is a microdystrophin gene transfer that is being evaluated for the treatment of Duchenne muscular dystrophy (DMD). The clinical hold had come after the company's report of a Serious Adverse Event (SAE) in the first patient dosed with SGT-001. CEO of Solid Biosciences, Ilan Ganot, commented, "We believe SGT-001 has the potential to offer significant benefit to patients with DMD, regardless of their age or stage of disease. We are pleased to have been able to provide the FDA with a comprehensive response resulting in the removal of the clinical hold so we can continue development of this important potential treatment.” The company is expecting to report initial data from a pre-specified interim analysis of IGNITE DMD in the second half of 2019.
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