CAMBRIDGE, Mass. (TheStreet) -- Foundation Medicine (FMI) will become majority-owned by Roche (RHHBY) as part of a $1 billion-plus strategic partnership to expand the use of genetic testing in cancer drug research and treatment, the companies announced today.

Roche's acquired stake in Foundation Medicineis priced at $50 per share, more than double the company's Friday closing price of $23.93. Foundation Medicine will continue to operate independently.

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The investment and strategic collaboration between Roche and Foundation Medicine was announced on the eve of the closely followed J.P. Morgan Healthcare Conferencein San Francisco.

Foundation Medicine analyzes the genetic signature of tumors to help doctors match patients with the optimal cancer treatment -- both approved drugs or clinical trials of experimental therapies. The company's two commercially available tests analyze solid tumors and blood-based cancers to find specific genetic mutations.

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Roche to Acquire Majority Stake in Cancer Genetic Test Maker Foundation Medicine

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