Roche Acquires Seragon Pharma - Analyst Blog

By
A A A

Roche ( RHHBY ) announced that it has entered into a definitive agreement to acquire privately-held biotechnology company, Seragon Pharmaceuticals, Inc.

The acquisition will provide Roche rights to Seragon's entire portfolio of investigational next-generation oral selective estrogen receptor degraders (SERDs) for the potential treatment of hormone receptor-positive breast cancer.

As per the terms of the agreement, Roche, through its subsidiary Genentech, will make an upfront cash payment of $725 million. The agreement also includes milestone payments of up to $1 billion.

The transaction, subject to customary conditions, is expected to close in the third quarter of 2014.

Once the transaction is completed, Seragon's portfolio will be integrated into Genentech Research and Early Development.

We note that Seragon's lead candidate, ARN-810, is a next-generation SERD that is currently in phase I. The trial is being conducted among patients who have hormone receptor-positive breast cancer and have failed current hormonal agents.

We remind investors that Roche is a leader in drugs for oncology, immunology and infectious diseases.

In particular, Roche is a leader in breast cancer market with its HER2 franchise with strong demand for drugs like Herceptin. The HER2 franchise includes Herceptin, Perjeta and Kadcyla.

The acquisition will further strengthen Roche's pipeline. Seragon's pipeline of next-generation SERDs will complement Roche's existing research and development programs in breast cancer.

Roche currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader healthcare sector include Regeneron Pharmaceuticals ( REGN ), Shire ( SHPG ) and Allergan ( AGN ). 

While Regeneron Pharma carries a Zacks Rank #1 (Strong Buy), Shire and Allergan hold a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ROCHE HLDG LTD (RHHBY): Free Stock Analysis Report

REGENERON PHARM (REGN): Free Stock Analysis Report

ALLERGAN INC (AGN): Free Stock Analysis Report

SHIRE PLC-ADR (SHPG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: RHHBY , REGN , AGN , SHPG

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

113,590,482
  • $14.98 ▼ 1.77%
57,689,941
  • $94.67 ▼ 0.37%
51,501,990
  • $3.31 ▼ 2.07%
46,645,770
  • $96.13 ▲ 0.55%
42,212,567
  • $72.36 ▼ 0.40%
39,428,076
  • $25.35 ▲ 0.80%
36,799,747
    $37 unch
36,459,390
  • $44.13 ▼ 2.35%
As of 8/1/2014, 04:03 PM