Roche (SIX: RO; OTCQX: RHHBY) has struck a deal to acquire US biopharma 89bio Inc. (Nasdaq: ETNB) in a transaction worth up to US$3.5 billion, strengthening the Swiss drugmaker’s push into treatments for metabolic disease.
The offer values 89bio at US$14.50 a share in cash, with the potential for an extra US$6.00 per share tied to future milestones. The deal brings Roche access to pegozafermin, a late-stage therapy in Phase III trials for Metabolic Dysfunction-Associated Steatohepatitis (MASH) — a serious liver disease linked to obesity and diabetes.
Roche said pegozafermin’s anti-fibrotic and anti-inflammatory profile gives it potential to become a leading therapy for patients with advanced fibrosis or cirrhosis. The company framed the acquisition as part of its broader cardiovascular, renal and metabolic strategy, where rising obesity rates are driving one of the fastest-growing areas of unmet medical need.
Shareholders in 89bio will receive the upfront cash payment, with contingent value rights linked to regulatory and commercial milestones — including approval in cirrhotic MASH and global sales targets of US$3.0 billion and US$4.0 billion by 2033 and 2035, respectively. Roche said the terms represent a roughly 52% premium to 89bio’s 60-day volume weighted average price to September 17.
The transaction is expected to close in the fourth quarter, pending regulatory clearances.
Market view
The move highlights intensifying competition in fatty liver and metabolic disease treatments, where drugmakers are racing to capture a large and still largely untapped market. Analysts note that while the deal expands Roche’s late-stage pipeline, success will hinge on regulatory approval and commercial uptake in what remains a crowded field.
For 89bio investors, the offer provides immediate value with the prospect of further upside if pegozafermin delivers on its late-stage promise. For Roche, it represents a calculated bet on a therapy that could become a cornerstone of its metabolic disease portfolio.