TESARO (TSRO) Stock Up On Rumors Of Buyout Offer From Roche
Zacks Investment Research | Jun 20, 2018 09:08PM ET
TESARO, Inc.’s (NASDAQ:TSRO) shares rallied 16.3% on Jun 20 on rumors of a potential acquisition offer from Roche (OTC:RHHBY) , as reported by intereconomia.com. The article on the website states that Roche may announce an offer soon.
Roche is looking to strengthen its oncology portfolio through acquisitions.
Roche has recently offered to buy the remaining stake in molecular information company, Foundation Medicine (NASDAQ:FMI) for $2.4 billion, which will help Roche to develop personalized cancer drugs using Foundation Medicine’s genomic profiling expertise.
Why Roche May be Interested in TESARO?
Tesaro has long been considered an attractive acquisition target by the investment community.
TESARO received a major boost with the approval of its PARP inhibitor, Zejula, in the United States in March last year. The drug is available as maintenance therapy for ovarian cancer treated with platinum-based chemotherapy. The drug has shown potential with commendable sales growth and has gained a majority share in the PARP inhibitor segment. The drug was also approved in Europe in November 2017.
Furthermore, TESARO is developing Zejula for the treatment of ovarian cancer in first-line setting. The company is also focused on developing the drug as monotherapy or in combination with PD-L1 antibodies beyond ovarian cancer in breast cancer, non-small cell lung cancer and bladder cancer.
The company has collaborations with Roche and Merck (NYSE:MRK) for developing Zejula in combination with Tecentriq and Keytruda, respectively. Moreover, TESARO is also developing its own anti-PD-1 antibody, TSR-042, in several cancer indications.
The performance of Zejula in its approved indication and ongoing clinical studies in prospective indications makes TESARO an attractive acquisition target for Roche.
However, several large pharma companies now have ample cash in hand (following the tax overhaul).This increases the probability of other companies rivaling a potential bid from Roche.
TESARO, Inc. Price
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.