Pharmaceutical firm Roche agreed yesterday to acquire cancer research technology provider and portfolio company Flatiron Health, paying $1.9bn for the remainder of the company’s shares.
Roche already owns a 12.6% stake in Flatiron, meaning the acquisition will value the company at approximately $2.15bn.
Founded in 2012, Flatiron has developed electronic health record software configured for oncology research, as well as technology that can manage and develop cancer research data.
The company will continue to operate its current business models and retain links to a network of academic medical centres and community oncology practices.
The company had raised a total of $313m and its last round, a $175m series C led by Roche in January 2016, valued it at a reported $1.2bn. Investment bank Allen & Company and investment firms Baillie Gifford and Casdin Capital also took part in that round.
GV, the corporate venturing unit formerly known as GV, had joined clinical services provider LabCorp, First Round Capital, Great Oaks Capital, Social Capital, SV Angel and IA Ventures to invest $8m in Flatiron as part of a 2013 series A round.
GV, a subsidiary of internet and technology group Alphabet, returned to lead the company’s $130m series B round the following year, investing alongside LabCorp and First Round.
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.”