On Monday, Roche (ROG.S.) announced that it will purchase Telavant from Roivant Holdings (ROIV.O.) and Pfizer Inc. (PFE.N.) for an initial $7.1 billion. Telavant is a developer of a novel medication for inflammatory bowel illnesses.
Thomas Schinecker, CEO of Roche, made the long-rumored acquisition in March, making it the company’s first significant acquisition under his leadership. Schinecker stated last month that Roche was open to significant mergers if they made sense from a scientific and business standpoint.
Following the purchase, Roche will have the ability to create, produce, and market RVT-3101, an investigational antibody, in the United States and Japan. The drug is getting ready for late-stage clinical trials. It is meant to help people with Crohn’s disease, inflammatory bowel disease, and moderate to severe ulcerative colitis, a long-term condition in which the colon and rectum become inflamed.
Nearly 8 million people have been diagnosed with inflammatory bowel disease globally, and 80% of those patients do not get a long-lasting remission, according to Roche. In a mid-stage research conducted in June, RVT-3101 demonstrated improvement in colon ulcers and inflammation compared to a placebo.
Roche said the medicine could be used to treat several other ailments and agreed to pay an extra $150 million in milestone payments.
The Basel-based business declared its dedication to launching an RVT-3101 worldwide Phase 3 study as soon as feasible. Pfizer owns the commercialization rights outside of the United States and Japan.
“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,” Schinecker stated.
“We are excited to add this promising new therapy in development to our portfolio and to make it available to patients as quickly as possible.”
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