Roche Billion Dollar Deal: Switzerland’s Roche is making a substantial move into a new therapeutic area by agreeing to pay an initial $7.1 billion to Roivant and Pfizer for the rights to an experimental drug for inflammatory bowel disease. This strategic expansion aims to counteract declining oncology sales for Roche.
Inflammatory bowel disease encompasses a group of chronic gastrointestinal disorders affecting nearly 8 million individuals worldwide, with a significant percentage not experiencing lasting remission. Roche is set to acquire Telavant Holdings, which houses the rights to develop, manufacture, and commercialize the experimental drug RVT-3101 in the United States and Japan, a collaborative effort with Pfizer and Roivant.
The deal signifies a significant move by Roche’s new CEO, Thomas Schinecker, to bolster the company’s drug development efforts following major setbacks in late-stage trials in Alzheimer’s and cancer immunotherapy last year. The acquisition is Schinecker’s first substantial move since taking the helm in March. He had previously expressed Roche’s openness to sizable acquisitions if they aligned with both scientific and financial objectives.
Roivant, founded by U.S. Republican presidential contender Vivek Ramaswamy, saw its shares rise by 16.4% to $11.24 in U.S. premarket trading following the announcement.
Roche will pay up to $150 million in addition to the upfront payment, contingent on specific development milestones. As Roche diversifies away from its aging oncology business, Schinecker continues the trend started by his predecessor, Severin Schwan, who is now the company’s chairman. The proliferation of cost-effective biotech alternatives is projected to result in a CHF 1.1 billion decline in sales of established medicines like Herceptin, Avastin, and Rituxan in 2023.
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While the acquisition is considered relatively expensive, analysts at Zuercher Kantonalbank believe the asset has the potential to become a best-in-class drug for inflammatory bowel disease.
Roche is set to launch the third and final phase of human testing for RVT-3101, following promising results in phase 2 trials for ulcerative colitis. Teresa Graham, head of Roche’s pharmaceutical division, expressed enthusiasm for advancing this molecule into Phase 3.
RVT-3101 belongs to the class of new treatments known as anti-TL1A antibodies, a category attracting significant deal activity. Earlier this month, Sanofi purchased rights to an anti-TL1A antibody from Teva for $500 million, with potential additional payments contingent on developmental progress. In April, Merck & Co agreed to acquire anti-TL1A antibody developer Prometheus Biosciences for $10.8 billion.
Originally developed by Pfizer, which maintains a 25% stake in Telavant, RVT-3101 is part of a 2022 agreement between Pfizer and Roivant, giving Pfizer rights to the drug outside of the United States and Japan.
Roche also envisions potential applications for the antibody in treating other diseases, with a commitment to making this therapy available to patients as soon as possible. Schinecker stated, “We strongly believe this novel TL1A directed antibody has the transformational potential to make a significant difference for patients living with inflammatory bowel disease and potentially other diseases.”
Our Reader’s Queries
What is Roche’s biggest acquisition?
Roche, the Swiss pharmaceutical giant, has recently revealed its plans to acquire Telavant Holdings in a massive $7.1 billion deal. This move is expected to bring significant changes to the healthcare industry, as Roche continues to expand its reach and influence. With this acquisition, Roche is set to strengthen its position as a leading player in the healthcare sector, and we can expect to see more exciting developments from this innovative company in the near future.
Did Roche buy Roivant’s bowel disease drug for $7.1 billion?
Roche, the Swiss pharmaceutical company, has acquired Telavant Holdings from Roivant Sciences and Pfizer for $7.1 billion. The focus of the acquisition is RVT-3101, an anti-TL1A antibody therapy that is used to treat irritable bowel disease. Roivant Sciences had purchased RVT-3101 from Pfizer in late 2020, prior to the publication of Phase 2 results.
What is the Roche controversy?
The true scandal lies in the fact that Roche was not breaking any laws by withholding crucial information about the effectiveness of their drug. Shockingly, it is still common practice for the methods and outcomes of clinical trials to be kept from doctors, researchers, and patients, all within legal bounds. This lack of transparency is a major issue that needs to be addressed in the medical industry.
The majority of the equities in the company are owned by the Hoffmann Family, with a whopping 64.97% stake. Maja Oeri holds 7.584% of the equities, while APG Asset Management NV owns 1.394%. Severin Schwan has a small stake of 0.2024%. Overall, the company’s ownership is spread across a handful of shareholders.