In 2013, the hospital spun off a gene therapy company developing a treatment for blindness that its scientists helped develop. At the time, the hospital agreed to invest $50 million and became the venture’s largest shareholder.
On Feb. 25, the $50 million investment paid off when drug giant Roche Holding agreed to pay $4.8 billion to buy that spinoff drug company — Spark Therapeutics.
The children’s hospital had a 10.6 percent stake in the drugmaker, which means the nonprofit hospital will make about $456 million. The hospital already has made about $285 million from its investment in Spark.
That means the hospital’s total proceeds of $741 million would represent a more than twentyfold return on investment, according to the report. The calculation is based on the roughly $33 million that Spark said the children’s hospital invested.
Read the full report here.
More articles on finance:
EmpowerHMS-owned Oklahoma hospital misses 3rd payroll
California’s proposal to end surprise ER bills: 7 things to know
For-profit hospital stock report: Week of Feb. 18-22
