Agreement will advance personal healthcare
Swiss drug company Roche Pharmaceuticals said it will purchase Flatiron Health Inc. for $1.9 billion.
The companies have signed a definitive agreement under which Roche will acquire all shares of Flatiron Health, following on from an existing equity stake of 12.6%. The transaction is expected to close in the first half of 2018.
The acquisition will bring together two companies committed to improving the lives of cancer patients through the evolving field of healthcare data and analytics, Roche said in a release. The companies will leverage their combined expertise to advance the use of real-world evidence to set new industry standards for oncology research and development.
Flatiron Health, a privately held healthcare technology and services company is a market leader in oncology-specific electronic health record (EHR) software, as well as the curation and development of real-world evidence for cancer research. With its large network of community oncology practices and academic medical centers across the US, Flatiron Health has created a technology platform designed to learn from the experience of every patient.
Roche’s acquisition of the Manhattan-based oncology data firm, which markets a specialized electronic health record system and collects information from community oncology practices and academic medical centers, serves to point up the increasing vitality of New York’s health technology industry.
The deal underscores what Unity Stoakes, co-founder and president of StartUp Health, a Manhattan-based digital health accelerator, told Crain’s New York Business is “the start of a new stage for the city’s health tech ecosystem. While there’s been a lot of capital flowing into the market, not enough investors have been thinking about how long it takes to build a truly great company. This is a great example that there’s much more to come. It just takes time.”
Daniel O’Day, Roche’s CEO said the deal is “an important step in our personalized 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. A key principle of this is to preserve Flatiron’s autonomy and their ability to continue providing their services to all existing and future partners.”
Flatiron’s co-founder and chief executive Nat Turner, said in a joint prepared statement that his company plans to use the funds to invest in its oncology software for providers. “Roche has been a tremendous partner to us over the past two years and shares our vision for building a learning health care platform in oncology
By: Andrew Blodgett Mayfair