The Swiss pharmaceutical giant is digging deep into its pockets: What is behind the billion-dollar purchase of 89bio – and why is one of the American drug candidates considered a hope for liver diseases?

The Swiss pharmaceutical company Roche is acquiring the US biotech company 89bio for up to $3.5 billion. According to Roche, the company is pioneering innovative therapies for the treatment of liver diseases.

89bio's lead product is the drug candidate pegozafermin, which is in late-stage development, according to Roche. Currently, pivotal trials are underway for the treatment of steatohepatitis. Steatohepatitis is a severe and common inflammatory liver disease associated with fatty accumulation in the liver, a common complication of obesity.

The acquisition strengthens Roche's portfolio in cardiovascular, renal, and metabolic diseases, the Basel-based company emphasized in its press release. It also opens up opportunities for future combination therapies.

Roche will pay $14.50 per 89bio share in cash, equivalent to approximately $2.4 billion. Shareholders will also receive a special upfront payment option of up to $6 per share, which could increase the total value of the acquisition to as much as $3.5 billion. That's equivalent to up to €3 billion.