Roche to buy US-based GenMark Diagnostics in $1.8bn deal

Switzerland’s Roche said on Monday that it has agreed to buy US-based GenMark Diagnostics for $24.05 a share or $1.8bn, in an all-cash deal.

The price represents a premium of about 43% to GenMark’s unaffected closing share price on 10 February, which was the last trading day before a media report was published about a potential sale.

Roche said the deal has been unanimously approved by the boards of directors of both companies.

GenMark provides multiplex molecular diagnostic solutions to enhance patient care, improve key quality metrics and reduce the total cost-of-care, Roche said.

Thomas Schinecker, chief executive of Roche Diagnostics, said: "Acquiring GenMark Diagnostics will broaden our molecular diagnostics portfolio to include solutions that can provide lifesaving information quickly to patients and their healthcare providers in the fight against infectious diseases.

"Their proven expertise in syndromic panel testing provides faster targeted therapeutic intervention, resulting in improved patient outcomes and reduced hospital stays, and will contribute to Roche’s commitment to helping control infectious diseases and antibiotic resistance. The rapid identification of bloodstream infections and the detection of antimicrobial resistance genes are more essential than ever for hospitals and their patients."

The acquisition is expected to complete in the second quarter of the year.

GenMark shares surged on the news and by 1545 GMT, were trading up 29% at $23.87.