Pharma BD Deal Intelligence

Roche Holding AG / 454 Life Sciences Corp.

2007 · Acquisition/Merger · $155M · Complete

WRONG BY 46 POINTS

Roche's $154.9M bet on 454's pyrosequencing technology was overtaken by Illumina within a few years and the subsidiary was fully shut down by 2013 — a textbook technology-obsolescence failure.

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The coverage arc

Mar 29, 2007 FierceBiotech Bullish

CuraGen announced definitive agreement to sell its 454 Life Sciences subsidiary to Roche; deal expected to close in Q2 2007 and provided CuraGen with capital…

Mar 30, 2007 Technology Networks Bullish

Roche acquires 454 Life Sciences to strengthen presence in ultra-fast gene sequencing, securing future generations of sequencing products and integrating the…

Oct 16, 2013 Bio-IT World Bearish

Six years after acquisition, Roche quietly shutters 454, as the once-pioneering pyrosequencing platform was outcompeted by rivals like Illumina, marking the…

Source summaries from our enrichment pipeline; follow links for originals.

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Roche acquired 454 Life Sciences from CuraGen for $154.9 million ($140 million in cash plus up to ~$15 million for outstanding stock options), entering the ultra-fast next-generation DNA sequencing market for in vitro diagnostic (IVD) applications. The acquisition integrated 454's Branford, Connecticut pyrosequencing operations into Roche Diagnostics. The platform ultimately proved uncompetitive against Illumina, and Roche shut down 454 in 2013, with production ceasing in 2016.

Did it work? Outcome assessment

Roche's $154.9M bet on 454's pyrosequencing technology was overtaken by Illumina within a few years and the subsidiary was fully shut down by 2013 — a textbook technology-obsolescence failure.

Strategic verdict
Failed to Achieve

Key facts

Related deals — scored

DealYearValueOutcome
Roche Holding AG / 454 Life Sciences Corp. (this deal)2007$155M14
Roche Holding AG / Chugai Pharmaceutical Co. Ltd.2002$1.4B100
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Roche Holding AG / Corange Ltd. (Boehringer Mannheim Group)1997$11.0B88
Roche Holding AG / Ventana Medical Systems Inc.2007$3.4B88
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