Roche Does Pharma M&A Without the Pharma

The Swiss giant agreed Tuesday to pay $2.4 billion to buy out the remaining shareholders in Foundation Medicine Inc., a cancer-focused gene sequencing company in which it holds a more than 50 percent stake. It follows Roche's $1.9 billion purchase earlier this year of Flatiron Health Inc., which collects and analyzes real-world data on how cancer patients are treated. These were Roche’s two biggest deals since 2014. The Foundation deal comes at a hefty premium, and may be a disappointment to investors who would have preferred a more typical acquisition focused on an actual, existing drug.