Swiss pharmaceutical giant Roche (SWX: ROG) has entered into an agreement to acquire U.S. biotech firm Carmot Therapeutics, a specialist in anti-obesity and diabetes drugs, in a transaction valued at USD 2.7 billion with potential milestone payments of up to USD 400 million. The acquisition is expected to close in the first quarter of 2024, positioning Roche among multinational corporations (MNCs) aiming to compete with segment leaders Novo Nordisk (NYSE: NVO) and Eli Lilly (NYSE: LLY) in the obesity market, which was estimated to be worth around USD 10.8 billion in 2022.
Carmot’s pipeline includes three clinical-stage drugs: CT-388, a Phase II GLP-1/GIP-targeted injectable peptide for weekly dosing in type 2 diabetes (T2D) and obesity; CT-868, also in Phase II, a daily injectable GLP-1/GIP peptide for type 1 diabetes patients with overweight/obesity; and a Phase I oral small-molecule GLP-1 agonist for daily dosing in T2D or obesity.
This acquisition is part of Roche’s strategy to diversify its portfolio beyond oncology, following recent trial setbacks. Earlier this year, Roche announced a USD 7.1 billion investment to acquire a novel inflammatory bowel disease (IBD) drug from Roivant (NASDAQ: ROIV) and Pfizer (NYSE: PFE).- Flcube.com
