12.01.201505:02:22UTC+00Roche to buy majority stake in Foundation for up to $1.18 billion

Roche Holding will acquire a majority stake in molecular and genomic analysis firm Foundation Medicine Inc for up to $1.18 billion, it said on Monday, in a move to bolster the Swiss drugmaker's personalized cancer treatments.

Roche said it is looking for the deal to help to develop combination therapies and more accurately identify cancer patients.

 The drug-maker said it will tender for about 15.6 million Foundation shares at $50 a share, worth up to about $780 million, at a premium of 109 percent to their Friday closing price. Roche will also invest $250 million in Foundation by acquiring 5 million newly issued shares at $50 per share.

The transactions will result in Roche owning between 52.4 percent and 56.3 percent of Foundation. Roche will obtain minority representation on the board of Foundation.

The collaboration will focus on developing genomic profile tests for cancer immunotherapies and for continuous blood-based monitoring.