Roche has revealed a substantial acquisition deal on Monday, where it will acquire Telavant Holdings from Roivant and Pfizer for $7.1 billion upfront, along with a mid-term milestone payment of $150 million.
This agreement grants Roche exclusive rights for the development, production, and marketing of RVT-3101 in the United States and Japan, with a focus on its application in treating inflammatory bowel disease and potentially related conditions. RVT-3101 is an antibody set for Phase 3 trials and stands out in its category due to its innovative mode of action. It is supported by compelling Phase 2b results in addressing ulcerative colitis.
In addition to this, Roche secures an option for a worldwide partnership with Pfizer concerning a cutting-edge Phase 1 bispecific antibody targeting p40/TL1A.
Roche’s CEO, Thomas Schinecker, expressed confidence in the transformative potential of this novel TL1A-directed antibody in helping patients with inflammatory bowel disease and potentially other ailments. The deal includes a $7.1 billion upfront payment, along with a near-term milestone payment of $150 million.
Pfizer will retain the commercialization rights for areas outside the US and Japan, while Roivant owns 75% of Telavant, and Pfizer owns the remaining 25%.
This strategic acquisition comes as Roche aims to replenish its drug pipeline, especially focusing on the development of a potential treatment for inflammatory bowel disease. Roche will gain exclusive rights to develop and sell the drug in the US and Japan, where a substantial market for IBD exists.
The new CEO of Roche, Thomas Schinecker, emphasized the transformative potential of the drug and its readiness for late-stage trials.
The deal with Telavant follows Roche’s partnership with Alnylam, worth up to $2.8 billion, to collaborate on an innovative medicine for hypertension.
Large pharmaceutical companies are increasingly exploring immunology, especially as they target diseases linked to overactive immune systems, given the large number of affected patients. Roche recognizes the potential of Telavant’s drug, RVT-3101, for applications beyond IBD, as it addresses both inflammation and fibrosis.
A Phase 2b trial of the drug in patients with moderate to severe ulcerative colitis, a form of IBD, demonstrated a 36% improvement in clinical remission over 56 weeks compared to a placebo. The drug was also found to be safe in the trial.
Telavant’s RVT-3101 has the potential to extend its applicability to other conditions due to its unique antibody properties.
Roche’s strategic acquisitions are part of its ongoing efforts to enhance its pharmaceutical division and address unmet medical needs in various therapeutic areas.
It’s important to note that Roivant Sciences, which has a portfolio of companies, was founded in 2014 by Vivek Ramaswamy. However, Ramaswamy is no longer associated with its management, and the company continues its operations under new leadership.