* To pay mtm shareholders 130 million euros
* To pay additional 60 million euros if targets reached
* Mtm specialises in early detection of cervical cancer
* Roche shares up 0.8 percent
(Adds analyst comment, shares)
ZURICH, July 19 (Reuters) - Roche Holding is to buy mtm laboratories for an initial 130 million euros ($184 million), deepening the Swiss drugmaker’s expertise in early detection and diagnosis of cervical cancer.
Roche, the world’s largest maker of cancer drugs, said on Tuesday it would pay mtm shareholders up to another 60 million euros if performance targets were reached.
Privately held mtm, based in Heidelberg, Germany, is a global leader in developing in vitro diagnostics, with a focus on early detection and diagnosis of cervical cancer, the largest early detection market in oncology, Roche said.
The buy was a good fit, analysts said.
“The mtm products are highly complementary and thus the acquisition will provide Roche with a strong portfolio in cervical cancer testing,” Vontobel analyst Andrew Weiss said in a note.
Roche could combine its current efficacy test for the Human Papilloma Virus (HPV) with mtm’s offering, possibly defining a new standard of care for cervical cancer testing, Weiss said.
Roche shares were up 0.8 percent at 0735 GMT, outperforming a 0.5 percent rise in the European pharmaceuticals sector . (Reporting by Catherine Bosley; Editing by Dan Lalor) ($1 = 0.7070 euro)