This blog is another installment in a series, Innovations Advanced by M&A, that underscores the unique role of mergers and acquisitions in promoting a competitive and innovative life sciences ecosystem for patients. You can find previous blogs in this series here.
Life sciences companies of all sizes rely on mergers and acquisitions (M&A) to focus on what they do best, and then combine complementary resources and expertise to quickly and efficiently advance new treatments and cures to consumers. In the case of Ignyta’s acquisition by Roche, M&A played a pivotal role in accelerating a new precision therapy to patients battling rare forms of cancer.
Founded in 2011 by Drs. David Lim and Gary Firestein, Ignyta initially focused on developing diagnostics for rheumatoid arthritis. However, after facing early scientific setbacks, the company pivoted its focus to advancing entrectinib, a promising investigational therapy for certain types of cancer caused by rare genetic mutations, along with developing diagnostic tests to help identify these mutations.
Ignyta’s focused team and scientific expertise enabled them to quickly show clinical proof-of-concept—a promising step for patients. However, to complete the large, resource-intensive clinical trials required to secure FDA approval, Ignyta needed to lean on the infrastructure and experience of a larger company. Ignyta was acquired by Roche in 2018.
“Ignyta has been singularly focused on developing precisely targeted therapeutics guided by diagnostics for patients with rare cancers. We are excited that Roche, the global leader in both oncology and personalized healthcare, recognizes this powerful approach and shares our passion for advancing entrectinib for the benefit of patients.”
– Jonathan E. Lim, Chairman, CEO and Co-Founder, Ignyta (December 2017)
Post-acquisition, Ignyta continued to operate in its hometown of San Diego, CA, as a fully owned subsidiary of Genentech, within the Roche group. Together, the combined company successfully completed late-stage clinical trials, and in 2019 entrectinib was approved by the FDA—marking a significant milestone for patients with these rare forms of cancer.
“Cancer is a highly complex disease, and many patients suffer from mutations which are difficult to detect and treat. The agreement with Ignyta builds on Roche’s strategy of fitting treatments to patients…”
Beyond delivering this transformative cancer therapy to patients, the acquisition also enabled one of Ignyta’s co-founders, Dr. Jonathan Lim, to reinvest in launching Erasca, a new precision oncology company that will further advance the race to treat and cure cancer.
For the battle against cancer to continue accelerating, it’s critical that policymakers recognize and support M&A as a unique and fundamental component of the American life sciences industry.