Roche acquires developer of MASH candidate Pegozafermin

Basel. Roche is further expanding its portfolio of candidates for non-alcoholic fatty liver disease (MASH): The acquisition of the San Francisco-based US company 89bio, announced on Wednesday, is the third acquisition the Swiss pharmaceutical giant has made in the obesity treatment context in less than two years. According to a company statement, Roche will "immediately make a cash tender offer to 89bio shareholders for all outstanding common shares at $14.50 per share." The initial transaction value is $2.4 billion. Including future milestone payments, this could reach up to $3.5 billion.

The Californian drug developer's most important asset is the FGF21 analogue pegozafermin, which, according to the manufacturer, is currently in three Phase III trials: against fatty liver disease in patients with moderate and severe fibrosis (stages F2 and F3) and in patients with liver cirrhosis (stage F4). According to a Roche press release, the drug "has the potential to become a breakthrough treatment option for MASH, one of the most common comorbidities of obesity."

Analysts estimate the medium-term market for MASH drugs to be in the high double-digit billions. Several research-based pharmaceutical companies are working on candidates for steatohepatitis; the world's first approved product is Resmetirom (Rezdiffra ^® ) from Madrigal Pharmaceuticals, which has been available in the US for over a year and was recently approved for Europe-wide use by the EU Commission.

Roche only entered the development of its own incretin mimetics for obesity at the end of 2023 with the acquisition of the privately held US company Carmot (for approximately $3.0 billion). This was followed in March of this year by the exclusive distribution rights to the long-acting amylin analogue petrelintide, which could generate up to $5.3 billion for the Danish manufacturer Zealand, including additional development-dependent payments. Petrelintide is currently being tested in Phase II clinical trials as an alternative to GLP-1 agonists for obesity and overweight in type 2 diabetics. (cw)