Pharmaceutical giant Roche set to buy liver drug developer 89bio in a potential deal worth approximately €2.4 billion.
Roche Strengthens Presence in Weight-Loss Market with $3.5 Billion Acquisition
In a strategic move to expand its reach in the booming weight-loss market, Swiss pharmaceutical giant Roche has agreed to acquire US biotech firm 89bio for up to $3.5 billion. This deal, announced in late 2023, follows Roche's recent acquisition of weight-loss drug developer Carmot for $2.7 billion and a deal with Denmark's Zealand Pharma worth up to $5.3 billion.
The acquisition of 89bio is primarily aimed at helping Roche grow in a field related to the weight-loss market. The deal, initially worth about $2.4 billion, could reach a total value of $3.5 billion with the inclusion of a non-tradeable contingent value right.
89bio's leading drug, pegozafermin, is in the late stages of development. Part of a class known as FGF21 analogues, pegozafermin is being developed to treat metabolic dysfunction-associated steatohepatitis, also known as fatty liver. The focus of this treatment is particularly on patients affected by overweight, obesity, and related health challenges such as fatty liver, also known as MASH.
The acquisition reinforces Roche's commitment to advancing therapies in cardiovascular, renal, and metabolic diseases. The deal for 89bio is expected to strengthen Roche's development pipeline for liver and cardiometabolic disease treatments.
Meanwhile, Eli Lilly announced in late summer 2023 the acquisition of a weight loss drug provider valued at 2.7 billion US dollars. However, the exact provider acquired by Lilly for 2.7 billion USD is not clearly stated in the given sources.
Roche's tender offer price for 89bio common stock is $14.50 per share in cash. The offer also includes a contingent value right to receive certain milestone payments of up to $6.00 per share.
The acquisitions of 89bio, Zealand Pharma, and Carmot are separate deals, each aimed at bolstering the companies' positions in the weight-loss market and advancing therapies for related diseases. With these acquisitions, Roche has made major inroads in the weight-loss market this year.
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