Roche Will Work With Oryzon on Cancer-Suppressing Genes

Roche Holding AG agreed to buy the rights from Spain’s Oryzon Genomics SA to an experimental drug that’s meant to switch on genes that block the growth of cancer, a new area in the crowded field of potential oncology therapies.

Roche will pay Barcelona-based Oryzon $21 million up front and for meeting near-term targets, plus payments that may exceed $500 million if the drug meets other goals. Basel, Switzerland-based Roche will also pay royalties if the compound makes it to the market. Oryzon will consider opportunities in coming months for an initial public offering, including in the U.S., Chief Executive Officer Carlos Buesa said in a phone interview.