RHHBF - Roche ventures into weight-loss drug market with $2.7B buyout of Carmot
2023-12-04 05:44:22 ET
Roche ( OTCQX:RHHBY ) announced on Monday a deal to acquire U.S. biotechnology company Carmot Therapeutics for USD 2.7B in cash at closing.
Based in Berkeley, California, Carmot specializes in obesity drugs, with a broad pipeline of therapeutics, including three clinical candidates and and others in preclinical development.
Its lead asset CT-388 is a Phase-2 ready dual GLP-1/GIP agonist, same as Eli Lilly's ( LLY ) Mounjaro or Zepbound, with potential for the treatment of obesity and its comorbidities.
The existing clinical data for Carmot's assets, especially the lead asset CT-388, suggests a best-in-class potential to achieve and maintain weight loss with differentiated efficacy, said Roche ( OTCQX:RHHBY ) in a statement .
Upon closing of the transaction, Roche ( OTCQX:RHHBY ) will obtain access to Carmot's current R&D portfolio, including all clinical and pre-clinical assets, with Carmot and its ~70 employees joining the Roche Group as part of its pharmaceuticals division. The deal also entitles Carmot's equity holders to receive payments of up to $400M based on achievement of certain milestones.
"Obesity is a heterogeneous disease, which contributes to many other diseases that together comprise a significant health burden worldwide. By combining Carmot's portfolio with programs in our Pharmaceuticals pipeline and our Diagnostics expertise and portfolio of products across cardiovascular and metabolic diseases, we are aiming to improve the standard of care and positively impact patients' lives," said Thomas Schinecker, CEO Roche Group.
Subject to customary closing conditions, the transaction is currently expected to close in the first quarter of 2024.
Major drugmakers with oral weight loss drug in studies include Eli Lilly ( LLY ) and Novo ( NVO ). Other relevant tickers include Amgen ( AMGN ) and Altimmune ( ALT ).
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Roche ventures into weight-loss drug market with $2.7B buyout of Carmot