Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY) And Pacific Bio Tie Up


Dallas, Texas 10/14/2013 (Financialstrend) – The stock of Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY) which is a development stage biotechnology company has scripted a sinusoidal wave in terms of its market value over the past 30 days. It had gained close to 6.4% in value during September 15 to October 2 trading period.  This was on back of news that got reported on September 25, which announced deal between Roche Holding and Pacific Biosciences of California Inc. (PACB).

As part of the deal which analysts have pegged at around $75 million the two drug equipment manufacturers have agreed to jointly develop “invitro diagnostic products”. The potential products would include high end gene-sequencing systems. Both companies believe that they would be able to supply this equipment to larger pharmaceutical giants which are dependent on these machines for their drug research efforts.

As part of the deal, Pacific Bio would get paid $35 million right of the bat. The deal has built in milestone parameters on achieving which, Pacific Bio can earn a further $40 million funding as part of the development cycles involved in the making of these  diagnostic systems. Commenting on the deal, Pacific Bio CEO and President Mike Hunkapiller has been quoted to have said that “As a world leader in in vitro diagnostics, Roche brings valuable expertise in designing products for clinical use and obtaining regulatory approvals to sell clinical products in the U.S. and around the world.”

In exchange of the $75 million, Roche will have exclusive distribution rights for the newly developed products. These rights would be specific to human vitro diagnostics; where as Pacific Bio would retain rights for other applications.

Dan Zabrowski, point’s person of Roche’s gene sequencing unit is quoted to have said that “This partnership aims to accelerate and support the transition of DNA sequencing into routine diagnostics.”