Roche Makes a Splash in the Obesity Pool
Dec 4, 2023 11:39:20 GMT
miamianne67, icemandios, and 2 more like this
Post by luxetvox on Dec 4, 2023 11:39:20 GMT
To paraphrase John Lennon, we sit here watching the wheels go round and round.....
Roche to Buy Obesity Drug Maker Carmot for $3.1 Billion (2)
2023-12-04 09:33:58.232 GMT
By Paula Doenecke
(Bloomberg) -- Roche Holding AG agreed to pay as much as
$3.1 billion for Carmot Therapeutics Inc., a developer of the
new type of weight-loss treatments that’s sparked a pharma
industry gold rush.
The deal for three experimental medicines in obesity and
diabetes could push the Swiss drugmaker into competition with
European rival Novo Nordisk A/S, whose drug Wegovy has fueled
the Danish pharma player’s growth into the most valuable company
in Europe.
Roche, which has come under pressure to improve its
pipeline with new medicines, agreed to pay $2.7 billion at first
for closely held Carmot and up to $400 million in milestones, it
said in a statement on Monday.
Though Carmot’s drugs are still in early stages of
development, the deal could lead to a competitor to the likes of
Wegovy and Eli Lilly & Co.’s Zepbound, which are fueling the
growth of a weight-loss market estimated to reach $100 billion
by the end of the decade.
Roche was among the first drugmakers to work on a treatment
in the GLP-1 class — a category that could fuel some of the
biggest-ever blockbusters — but it halted the experimental
medicine’s development more than a decade ago after patients
dropped out of a study due to side effects like nausea.
Crowded Field
The field is more crowded now, with Pfizer Inc. working on
a weight-loss pill and AstraZeneca Plc signing a licensing deal
with Chinese drug developer Eccogene for another.
Roche rose as much as 2.2% in Zurich trading. The stock is
one of the worst performers among European peers this year.
Eli Lilly’s market value now exceeds half a trillion
dollars on hopes for its drug, while Novo Nordisk is close
behind. Roche’s stock has dropped more than 15% this year,
giving it a value of about $228 billion.
Carmot’s lead experimental medicine is a weekly injection
that’s ready to enter the second of three stages of clinical
tests, meaning it’s still a few years away from reaching
patients. But existing data “suggests a best-in-class potential
to achieve and maintain weight loss with differentiated
efficacy,” according to Roche.
Muscle Mass
One of the other two treatments is a pill, which drugmakers
see as the next frontier for obesity treatments because it will
be easier to take. The assets could combine with another
experimental Roche drug that preserves muscle mass, solving one
of the fallouts of existing treatments. The trio could also have
potential in other indications such as heart disease, Roche
said.
Carmot had been exploring an initial public offering,
people with knowledge of the matter said in September.
Read more: Weight-Loss Drugmaker Carmot Therapeutics Is
Said to Weigh IPO
Carmot’s financial backers include Horizons Ventures, the
private investment arm of tycoon Li Ka-shing, Hong Kong’s
richest person, according to the Bloomberg Billionaires Index.
The firm co-led a $15 million financing round for Carmot in 2018
with health-care venture capital fund the Column Group.
Roche has been seeking to shore up its pipeline as a
windfall from treatments and testing equipment during the
pandemic comes to an end. The deal follows Roche’s agreement to
pay $7.1 billion for Telavant Holdings Inc., a developer of a
promising therapy for inflammatory bowel disease.
Upon closing, Roche will obtain all of Berkeley,
California-based Carmot’s clinical and pre-clinical assets. The
transaction is currently expected to close in the first quarter
of 2024.
Roche to Buy Obesity Drug Maker Carmot for $3.1 Billion (2)
2023-12-04 09:33:58.232 GMT
By Paula Doenecke
(Bloomberg) -- Roche Holding AG agreed to pay as much as
$3.1 billion for Carmot Therapeutics Inc., a developer of the
new type of weight-loss treatments that’s sparked a pharma
industry gold rush.
The deal for three experimental medicines in obesity and
diabetes could push the Swiss drugmaker into competition with
European rival Novo Nordisk A/S, whose drug Wegovy has fueled
the Danish pharma player’s growth into the most valuable company
in Europe.
Roche, which has come under pressure to improve its
pipeline with new medicines, agreed to pay $2.7 billion at first
for closely held Carmot and up to $400 million in milestones, it
said in a statement on Monday.
Though Carmot’s drugs are still in early stages of
development, the deal could lead to a competitor to the likes of
Wegovy and Eli Lilly & Co.’s Zepbound, which are fueling the
growth of a weight-loss market estimated to reach $100 billion
by the end of the decade.
Roche was among the first drugmakers to work on a treatment
in the GLP-1 class — a category that could fuel some of the
biggest-ever blockbusters — but it halted the experimental
medicine’s development more than a decade ago after patients
dropped out of a study due to side effects like nausea.
Crowded Field
The field is more crowded now, with Pfizer Inc. working on
a weight-loss pill and AstraZeneca Plc signing a licensing deal
with Chinese drug developer Eccogene for another.
Roche rose as much as 2.2% in Zurich trading. The stock is
one of the worst performers among European peers this year.
Eli Lilly’s market value now exceeds half a trillion
dollars on hopes for its drug, while Novo Nordisk is close
behind. Roche’s stock has dropped more than 15% this year,
giving it a value of about $228 billion.
Carmot’s lead experimental medicine is a weekly injection
that’s ready to enter the second of three stages of clinical
tests, meaning it’s still a few years away from reaching
patients. But existing data “suggests a best-in-class potential
to achieve and maintain weight loss with differentiated
efficacy,” according to Roche.
Muscle Mass
One of the other two treatments is a pill, which drugmakers
see as the next frontier for obesity treatments because it will
be easier to take. The assets could combine with another
experimental Roche drug that preserves muscle mass, solving one
of the fallouts of existing treatments. The trio could also have
potential in other indications such as heart disease, Roche
said.
Carmot had been exploring an initial public offering,
people with knowledge of the matter said in September.
Read more: Weight-Loss Drugmaker Carmot Therapeutics Is
Said to Weigh IPO
Carmot’s financial backers include Horizons Ventures, the
private investment arm of tycoon Li Ka-shing, Hong Kong’s
richest person, according to the Bloomberg Billionaires Index.
The firm co-led a $15 million financing round for Carmot in 2018
with health-care venture capital fund the Column Group.
Roche has been seeking to shore up its pipeline as a
windfall from treatments and testing equipment during the
pandemic comes to an end. The deal follows Roche’s agreement to
pay $7.1 billion for Telavant Holdings Inc., a developer of a
promising therapy for inflammatory bowel disease.
Upon closing, Roche will obtain all of Berkeley,
California-based Carmot’s clinical and pre-clinical assets. The
transaction is currently expected to close in the first quarter
of 2024.
.