by
John R. Fischer, Senior Reporter | December 14, 2021
City of Hope will pay $390 million to acquire Cancer Treatment Centers of America
City of Hope is acquiring Cancer Treatment Centers of America (CTCA) for $390 million.
As an NCI-designated comprehensive cancer research and treatment organization, City of Hope conducts nearly 1,000 clinical trials annually that enroll 25% of its patients and has more than 450 patent portfolios. It also has 95 active investigator-initiated investigational new drugs and approximately 50 IND applications submitted to the FDA each year.
The deal is expected to create a large network of inpatient and outpatient oncology care that would serve an estimated 115,000 patients annually,
according to Modern Healthcare. It would do this by bringing CTCA’s network of oncology hospitals and outpatient centers in the U.S. under City of Hope management and help expand the latter's portfolio of cancer services and capabilities, including for research and development. It also is expected to increase the number of patients able to access cancer care and treatment.
“A critical part of cancer care is closing the gap to access that exists for too many patients, particularly in underserved communities. By joining forces with CTCA, we’re taking a major step forward in our mission to democratize cancer care and bring today’s treatments and tomorrow’s discoveries to even more people who need them now,” said Robert Stone, president and CEO of City of Hope and the Helen and Morgan Chu chief executive officer distinguished chair, in a statement.
CTCA offers surgery, radiation, chemotherapy, immunotherapy and advancements in precision medicine with supportive therapies to manage side effects and enhance quality of life during treatment and into survivorship for its patients. It also conducts clinical trials around potential new treatment options.
Together, City of Hope and CTCA will employ approximately 11,000 team members and 575 physicians across locations in California, Arizona, Illinois and Georgia, with no geographic overlap. This also includes a new campus in Irvine, California that is set to open in the summer of 2022. Dr. Pat Basu will retain his position as CEO of CTCA and report to Stone.
Additionally, City of Hope expects CTCA to help increase its partnerships and support the ongoing expansion of its clinical network in Southern California. Recently, City of Hope acquired another organization, the Translational Genomics Research Institute, to use its genomics research capabilities to enhance specialized care it offers to patients and its expertise in precision medicine. It also launched AccessHope in 2019 to further the reach of its clinical and research expertise directly to partner employers, including 17 of the Fortune 500 companies. These companies can now offer their employees cancer information and expert clinical decision support.
“Through the shared, patient-centric values of both organizations and expanded access as a result of the collaboration, cancer patients across the nation will be the ultimate beneficiaries of this relationship,” said Basu.
The deal is subject to regulatory approvals and is expected to close in early 2022. City of Hope plans to convert CTCA to a nonprofit following the closing of the deal.
