Foundation Medicine Skyrockets 120% Following Deal With Roche

Shares of Foundation Medicine Inc FMI soared over 100 percent on Monday following news that it will will enter into a broad strategic collaboration with Roche Holding Ltd ROG for the development of novel treatment options for cancer patients.

As part of collaboration, Roche will acquire a majority interest in Foundation Medicine of up to 56.3 percent and will tender for approximately 15.6 million Foundation Medicine shares at $50 per share in deal worth approximately $780 million.

Roche will also invest $250 million in Foundation Medicine by acquiring 5 million newly issued shares at $50 per share.

“We are very pleased to enter into this collaboration with FMI, which has the potential to improve both the development of medicines and patient care,” said Daniel O’Day, COO of Roche Pharma. “By combining FMI’s pioneering approach to genomics and molecular information with Roche’s expertise in the field of oncology, we can bring personalized healthcare in oncology to the next level.”

Foundation Medicine traded at $54.00 in Monday's premarket, up 125 percent.

Roche traded at $283.70, up 2.01 percent.