(Bloomberg) — In a bid to break into the burgeoning weight-loss market, Roche Holding AG has announced its acquisition of Carmot Therapeutics Inc., a pioneer in the development of cutting-edge weight-loss treatments. The deal, valued at up to $3.1 billion, has the potential to position the Swiss pharmaceutical giant as a formidable competitor to European rival Novo Nordisk A/S.
Roche will pay an initial sum of $2.7 billion and up to $400 million in additional milestones for three clinical-stage assets in the obesity and diabetes space. These assets have the potential to challenge the success of Novo Nordisk’s Wegovy and Eli Lilly & Co.’s Zepbound, which are currently driving the rapid growth of the weight-loss market projected to reach $100 billion by 2030.
The acquisition of Carmot Therapeutics also puts Roche in the company of other pharma giants making significant moves in the weight-loss space, including Pfizer Inc. and AstraZeneca Plc. Roche, looking to bolster its pipeline after the Covid-19 pandemic, has set its sights on capturing a share of the emerging market for weight-loss drugs.
Carmot Therapeutics has received funding from Horizons Ventures, the investment arm of billionaire Li Ka-shing, further solidifying its position as a major player in the weight-loss pharmaceutical arena.
Roche’s latest acquisition includes Carmot’s lead asset, an innovative obesity treatment tailored for patients with and without type-2 diabetes. The treatment, administered via subcutaneous injection once a week, has the potential for stand-alone and combination therapies, as well as expansion into other indications, according to Roche.
The acquisition of Carmot Therapeutics follows Roche’s recent $7.1 billion deal to acquire Telavant Holdings Inc., underscoring the company’s commitment to advancing its pharmaceutical portfolio.
Upon completion of the transaction, Roche will take possession of all of Carmot’s clinical and pre-clinical assets, with the closure expected to take place in the first quarter of 2024.
For more details: Weight-Loss Drugmaker Carmot Therapeutics Is Said to Weigh IPO
–With assistance from Shirley Zhao.
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