Roche Ventures Into Obesity Drug Market With $2.7 Billion Carmot Acquisition

According to reports in the media, Roche has announced its acquisition of Carmot Therapeutics for a substantial sum of USD 2.7 billion. The deal positions Roche to compete with key players like Novo Nordisk and Eli Lilly, who currently dominate the obesity drug market, the media reports stated.

The media reports further informed that Carmot Therapeutics' standout candidate, CT-388, a once-a-week injection falling under the dual GLP-1/GIP receptor agonist class, caught Roche's attention. This drug, similar to Lilly's Mounjaro (Zepbound), has shown promising results in Phase I trials and is set to progress to the second stage of testing involving human subjects, according to a statement released by Roche on Monday.

Novo Nordisk leads the market with its obesity drug Wegovy, a single agonist targeting the GLP-1 gut hormone receptor. Roche's entry into the obesity drug arena signals a growing interest in this market, with analysts estimating its potential annual revenues to reach up to USD 100 billion.

Roche expressed optimism about CT-388, stating that it has the potential to become the best-in-class treatment for obesity and its related comorbidities. The acquisition aligns with Roche's strategy to revitalise its drug development pipeline under the leadership of CEO Thomas Schinecker, who assumed the role in March.

Besides the USD 2.7 billion upfront purchase price, Roche has committed to additional payments of up to USD 400 million contingent on the achievement of specific milestones. This marks another significant deal for Roche, following its October agreement to pay USD 7.1 billion to Roivant and Pfizer for rights to a new inflammatory bowel disease drug.

Carmot, founded in 2008 and led by long-time CEO Stig Hansen, will bring its portfolio of clinical-stage gut-hormone drugs, addressing obesity in patients with and without diabetes, to Roche. The acquisition is expected to be completed in the first quarter of 2024, at which point Carmot's employees will join Roche's pharmaceuticals division.