Roche Holding, a Swiss pharmaceutical company, has announced its plan to acquire California-based biotechnology company Carmot Therapeutics for up to $3.1 billion. The deal aims to tap into assets that have the potential to treat obesity in patients with and without diabetes.
Under the agreement, Roche will pay $2.7 billion in cash to acquire privately-owned Carmot Therapeutics, with the possibility of additional milestone payments amounting to $400 million.
This strategic partnership will provide Roche with access to Carmot's portfolio of research and development, including clinical-stage subcutaneous and oral incretins. These incretins are gut hormones that play a crucial role in regulating blood glucose levels by stimulating insulin secretion and suppressing appetite.
One notable asset in Carmot's portfolio is a treatment with the potential to improve weight loss among patients with and without type 2 diabetes. Additionally, another asset focuses on the treatment of overweight or obese patients with type 1 diabetes.
Levi Garraway, Roche's Chief Medical Officer and Head of Global Product Development, expressed excitement about the broad opportunities presented by Carmot's portfolio. He emphasized the potential to develop combination therapies that address obesity and potentially other medical conditions.
Upon completion of the transaction, expected in the first quarter of 2024, Carmot and its approximately 70 employees will join Roche's pharmaceuticals division.
Roche shares experienced a 2.3% increase, reaching CHF245.05 during early-afternoon trading.