Roche Holding AG has agreed to buy MTM Laboratories, deepening the Swiss drugmaker's expertise in early detection and diagnosis of cervical cancer.

Roche, the world's largest maker of cancer drugs will pay MTM shareholders an upfront payment of some €130 million as well as up to about €60 million if certain performance targets are reached.

The privately held firm, 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.

"As a result of the acquisition, Roche will have a comprehensive portfolio offering for cervical cancer testing from cytological screening to histological diagnosis and provide previously unavailable levels of medical value to gynaecologists and patients worldwide," Daniel O'Day, chief operating officer of Roche Diagnostics, said in a statement.

Reuters