Swiss pharmaceutical company Roche is contemplating divesting cancer data specialist Flatiron Health. According to media reports, Roche had paid $1.9 billion for New York-based Flatiron Health in 2018 to speed its development of cancer medicines and support its efforts to price them based on how well they work.
The pharmaceutical company is now working with Citigroup to assess options for Flatiron, including divesting the business or selling part of the company to a partner that could help run the business, the FT report said.
Although Roche has kept Flatiron as a separate legal entity, its ownership has deterred some rival drugmakers from doing business with the start-up which has hurt the unit’s sales, according to the report.
Roche executives who originally played a part in the deal have largely departed, leaving Flatiron with fewer advocates at the Swiss company, the report added. A spokesperson from Roche said: “As a matter of policy, we don’t comment on rumours.”
Flatiron, once backed by Alphabet, taps into data on individual cancer cases to help doctors select promising approaches for their patients. It also stores billing data, doctors’ notes and related information, according to a report by Reuters.
The report on Roche mulling divesting Flatiron comes after the drugmaker last month raised its full-year earnings forecast driven by strong demand for newer drugs such as its eye medicine Vabysmo.
(With inputs from Reuters)