Investors and analysts react favorably.
As Roche announced on Monday, it will take over Telavant Holdings, a company owned by the US biotech company Roivant and the US group Pfizer. This means that the Basel-based company will receive the development, manufacturing and marketing rights for the active ingredient RVT-3101 in the USA and Japan from Telavant.
RVT-3101 is a promising new therapy being developed for patients suffering from inflammatory bowel disease, including ulcerative colitis and Crohn’s disease.
According to Roche, almost 8 million people worldwide are diagnosed with inflammatory bowel disease. In 80 percent of those affected, these do not go away permanently.
Completion expected in Q1 2024 at the latest
Roche will pay an upfront purchase price of $7.1 billion and a short-term milestone payment of $150 million. As a result, the Basel-based company receives full rights to the active ingredient and can market it in the USA and Japan. The rights for the other regions belong to Pfizer.
The transaction will be completed in the first quarter of 2024 at the latest, it said. Roche now wants to start a pivotal study as soon as possible after initial studies have shown the desired therapeutic effect in the treatment of ulcerative colitis.
Further collaboration with Pfizer possible
At the same time, as part of the agreement, Roche has the opportunity to start a global collaboration with Pfizer to research a next-generation bispecific antibody. This is currently being tested in initial clinical studies.
Telavant was co-founded in 2022 by Roivant and Pfizer to develop and commercialize RVT-3101 in the United States and Japan. Roivant owns 75 percent of the issued and outstanding Telavant shares, and Pfizer owns the remaining 25 percent.
The US biotech company Roivant Sciences was founded in 2014 by Republican presidential candidate Vivek Ramaswamy. He resigned from his functions last year in order to concentrate fully on his presidential campaign.
Analysts praise deal
Analysts are generally positive about the transaction. “In the race to develop a novel TL1A antibody, RV-3101 from Telavant is in pole position,” says UBS. He has the potential to reach the market at least a year before the competition. If approved, the drug would definitely have blockbuster potential, i.e. achieve top sales in the billions.
On the SIX, Roche shares were temporarily trading 0.46 percent lower at 237.90 francs.
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