ROIV - Roivant reportedly could sell colitis drug to Roche for over $7B

2023-07-13 19:22:04 ET

Roivant Sciences ( NASDAQ: ROIV ) is close to selling its its ulcerative colitis drug candidate RVT-3101 to Roche ( OTCQX:RHHBY ) through deal that could be worth more than $7B, according to the Wall Street Journal.

Roivant has been developing the drug with Pfizer ( PFE ) through a subsidiary called Telavant, with Pfizer holding a 25% stake. It's unclear how Pfizer's rights would be impacted by a sale of the drug to Roche, according to the Wall Street Journal report.

RVT-3101 is currently in Phase 3 testing for the treatment of ulcerative colitis. The company reported positive results from a Phase 2 study for the drug in June. The product is also in Phase 2 testing for Crohn's disease, according to Roivant's website.

In an note released on July 7, Citi analysts called RVT-3101 a "highly encumbered asset" due to the Pfizer partnership and estimated Roivant's stake in Telavant to be worth around $4.5B. They added that they viewed Roivant as an "unlikely" takeout candidate as a whole due to its portfolio structure.

Based in the UK, Roivant has at least 13 subsidiaries focused on drug development. The company was founded by Vivek Ramaswamy, who is currently seeking the Republican Party nomination for US president. Ramaswamy served as Roivant's chairman until late February, when he stepped down to focus on his campaign.

More on Roivant:

• Roivant Sciences has reportedly drawn pharma interest in $7B+ bowel drug
• Roivant Sciences' RVT-3101: Advancing Ulcerative Colitis Treatment Innovation
• Roivant rises after long-term data for ulcerative colitis candidate
• Roivant Sciences: Financial Fortitude And Pipeline Advancements Demonstrate Strength

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