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| Roland Diggelmann, COO of Roche Diagnostics Global--Courtesy of Roche |
Roche ($RHHBY) snatched up genomics research outfit CAPP Medical to get its hands on the company's cancer detection platform, continuing its M&A streak and strengthening its foothold in cancer R&D.
Neither side is revealing financial terms, but Roche will inherit CAPP's liquid circulating tumor DNA (ctDNA) technology through the deal. The platform uses DNA sequencing to pinpoint small amounts of ctDNA through a blood draw, a technique that could help physicians select the best therapy for patients and monitor their condition over time. Next-generation sequencing (NGS) methods like CAPP's could also offer a most cost-effective diagnostic alternative, as current screening uses PET and CT imaging to monitor the disease's progression, Roland Diggelmann, COO of Roche Diagnostics, said in a statement.
"CAPP Medical's technology for detecting the circulating cancer DNA from blood has the potential to further strengthen Roche's diagnostic offerings for patients and will provide valuable clinical trial support for Pharma oncology pipelines," he said.
The deal is another feather in Roche's cap as it expands in the cancer diagnostics space. In February, the company scooped up Germany's Signature Diagnostics to diversify its cancer testing portfolio. Under the terms of the deal, Roche will use samples from Signature's blood plasma and tissue biobanks to develop circulating cell free DNA tests for noninvasive cancer monitoring.
Last week, the diagnostics giant finalized its $1.2 billion deal with Foundation Medicine ($FMI), gaining a majority stake in the company and planning to funnel up to $150 million over the next 5 years toward a "broad R&D collaboration" that speeds up Foundation's product development and bolsters the companies' global commercialization efforts.
Roche is not the only company looking to cash in on the market. Diagnostics outfits such as Natera and ACT Genomics are also jumping on the bandwagon, eyeing a cancer profiling sector that is anticipated to grow to $35 billion by 2018. In February, Taiwan-based ACT Genomics raked in $8 million in its first private funding round to support development of its NGS and molecular testing platforms for cancer. Last week, Natera reeled in $55 million in private financing to develop a noninvasive, cell-free DNA-based test for early detection and monitoring of cancer.
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