Roche is expanding its obesity drug pipeline with the acquisition of Carmot Therapeutics for up to US$3.1 billion.
Per the agreement, Roche will pay US$2.7 billion upfront to acquire private biotechnology firm Carmot with additional milestone payments of up to US$400 million available.
It will acquire all of Carmot’s current research and development portfolio, including its clinical stage incretins which show potential to treat obesity and diabetes, and Carmot’s employees will join Roche as part of its pharmaceuticals division.
Roche noted that Carmot’s lead asset CT-388 is a Phase-2 ready dual GLP-1/GIP agonist with best-in-class potential for the treatment of obesity and its comorbidities.
“Obesity is a heterogeneous disease, which contributes to many other diseases that together comprise a significant health burden worldwide,” Roche Group CEO Thomas Schinecker said in a statement.
“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.”
The transaction is expected to close in the first quarter of 2024.
Roche’s US-listed shares were higher on the deal, up 3% in the early afternoon on Tuesday at US$35.38.
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