Roche’s acquisition of Spark fails a third timePublished: May 17, 2019
With the merger deal failing a third time, Roche’s plan to enter the gene therapy space is getting delayed.
Earlier this year Roche announced its plan to acquire Spark Therapeutics for $4.3 billion. Upon successful completion of the deal, Spark was supposed to receive a further payment of $500 million, bringing the total value of the deal to $4.8 billion. The deal was expected to complete in the second quarter of 2019.
According to Roche’s CEO Severin Schwan, Spark’s proven expertise in the gene therapy sector, in particular, its hemophilia A program was the motive behind Roche’s acquisition plan.
After the deal closure, Spark Therapeutics had plans to continue its operations in Philadelphia as an independent company within the Roche Group.
Now Roche has provided an update stating that it would refile premerger notification and report forms on or about May 23 and extended the tender period until June 14. The delay would give more time for the government to complete its current review.
Spark Therapeutics is developing adeno-associated viral vector-base gene therapies a range of debilitating genetic diseases, including inherited retinal diseases, liver-directed diseases such as hemophilia and lysosomal storage disorders and neurodegenerative diseases. Spark’s LuxturnaTM for the treatment of inherited retinal diseases caused by mutations in the RPE65 gens is the first FDA-approved gene therapy for a genetic condition in the United States.
Source: Roche suffers third delay on Spark deal; Website