On Friday, a Roche Pharmaceutical spokesperson announced during a press conference that the company successfully completed the acquisition of New York-based electronic health record systems company Flatiron Health for $1.9 billion. Daniel O’Day, Roche’s CEO, considers the recent merging a milestone for improved oncology treatments.
Roche Pharmaceuticals Was Flatiron’s Most Important Client
Founded in 2012 by Zach Weinberg and Nat Turner, Flatiron Health quickly became of the most important player on the oncology EHR market, having patented hundreds of systems aimed at improving the lives of patients struggling with cancer.
The company’s founders believed that the only way to move forward in cancer research is to pay close attention to the stories of the people who have been diagnosed with this condition. By the end of 2016, Flatiron Health’s astounding results attracted the attention of pharmaceutical conglomerate Roche, besides whom they were engaged in several research projects.
By 2017, after several Series C funding rounds, Flatiron Health managed to secure a $175 million investment, bringing the company’s total investments to approximately $320 million.
In 2018, Roche Pharmaceuticals has begun negotiating for the acquisition of Flatiron Health and, on Friday, Daniel O’Day, Roche’s CEO, declared that the talks had yielded the right results, the company managing to buy the company for $1.9 billion, funds that will be used to purchase the rest of the shares from the market.
Although Roche Pharmaceuticals bought the company, O’Day declared that Flatiron will operate independently under Roche’s banner, and will continue the same oncology groundbreaking work.
Before the acquisition, Roche Pharmaceuticals was a Flatiron Health minor stakeholder, having 12.6 percent of all shares on the market.
Roche’s bold move also secured Flatiron’s partners who, over the years has collaborated with various entities around the United States including cancer clinics, therapeutic oncology providers, and several oncology research facilities.
Image source: Wikipedia