Swiss drugmaker Roche has agreed to acquire Flatiron Health, a US-based healthcare technology and services company, for $1.9bn.
Headquartered in New York, Flatiron Health is a provider of oncology-specific electronic health record (EHR) software.
The company, which was founded in 2012, is also engaged into curation and development of real-world evidence for cancer research.
Roche, which currently holds a stake of 12.6% in the US firm, expects the transaction to help in speeding up industry-wide development and delivery of breakthrough medicines for cancer.
It also said that the acquisition will bring together two companies focused on enhancing the lives of cancer patients by making use of healthcare data and analytics.
The transaction is also expected to enable the two companies to tap into their combined expertise to advance the use of real-world evidence, and thereby define new industry benchmarks for oncology research and development.
Roche Pharmaceuticals CEO Daniel O’Day said: “This is an important step in our personalised healthcare strategy for Roche, as we believe that regulatory-grade real-world evidence is a key ingredient to accelerate the development of, and access to, new cancer treatments.
“As a leading technology company in oncology, Flatiron Health is best positioned to provide the technology and data analytics infrastructure needed not only for Roche, but for oncology research and development efforts across the entire industry.”
In January 2016, the cloud-based oncology software provider raised $175m through a Series C fundraising round, led by Roche.
Flatiron Health co-founder and CEO Nat Turner said: “Roche has been a tremendous partner to us over the past two years and shares our vision for building a learning healthcare platform in oncology ultimately designed to improve the lives of cancer patients.
“This important milestone will allow us to increase our investments in our provider-facing technology and services platform, as well as our evidence-generation platform, which will remain available to the entire healthcare industry.”
The completion of the transaction will be subject to customary closing conditions, following which Flatiron Health will continue its operations as an independent company.
The company's existing business model, network of partnerships and overall objectives will remain intact as well after the completion of the deal.
Image: Site Roche Basel. Photo: courtesy of F. Hoffmann-La Roche Ltd.