Roche Acquires Telavant For $7.1 Billion

Roche announced its acquisition of Telavant, a company specialising in innovative treatments for inflammatory bowel diseases, in a deal valued at an initial sum of USD 7.1 billion. The purchase involves the acquisition of Telavant from Roivant Holdings and Pfizer Inc, as reported by Reuters on Monday.

In a strategic move to expand beyond its ageing cancer treatment sector, Roche has struck a deal that grants the Swiss pharmaceutical company the rights to develop, produce, and market an experimental drug called RVT-3101 in the United States and Japan, Reuters reported. 

According to the reports, the newly acquired drug, designed to combat inflammatory bowel diseases like ulcerative colitis and crohn's disease, falls within the category of emerging treatments referred to as anti-TL1A antibodies, which have garnered significant attention in the pharmaceutical industry with a flurry of major deals. 

Reportedly, just this month, Sanofi secured the rights to an anti-TL1A antibody from Teva, making an upfront payment of USD 500 million, with the potential for up to USD 1 billion in milestone payments, contingent upon developmental milestones. Additionally, in April, Merck & Co. made a noteworthy agreement to acquire Prometheus Biosciences, a developer of anti-TL1A antibodies, in a deal valued at USD 10.8 billion, the report from Reuters stated.

Inflammatory bowel disease is a group of chronic gastrointestinal disorders with almost 8 million people diagnosed worldwide and 80 per cent of all individuals not experiencing lasting remission, according a report from Reuters.

Roche said the antibody, which is close to starting a phase 3 trial, also had the potential to be used to treat multiple other diseases.

"We strongly believe this novel TL1A directed antibody has the transformational potential to make a significant difference for patients living with inflammatory bowel disease and potentially other diseases," said Roche CEO Schinecker, Reuters report stated.

(Reuters)