Pharmaceutical company Roche to make significant acquisition with purchase of 89bio for $3.5 billion in the MASH sector.
Roche, a leading pharmaceutical company, has announced its acquisition of California-based biotech firm 89bio in a deal worth up to $3.5 billion. This move is part of a recent active buying spree by Big Pharma, as companies seek to expand their portfolios and strengthen their positions in specific therapeutic areas.
The centerpiece of the acquisition is 89bio's FGF21 analog, pegozafermin, which is in late-stage development for metabolic dysfunction-associated steatohepatitis (MASH). Pegozafermin, a liver hormone that helps regulate metabolism, has shown promising potential in reducing fibrosis.
In the Phase IIb ENLIVEN study, 27% of patients treated with 44-mg pegozafermin twice a week saw at least a one-stage improvement in fibrosis without worsening of MASH, compared to 7% in the placebo group. Moreover, 26% of pegozafermin-treated patients achieved resolution of MASH without worsening of fibrosis, compared to 2% in the placebo group.
The acquisition of pegozafermin from 89bio is expected to close in the fourth quarter of 2025. The deal includes a contingent value right of $6 per share for 89bio's shareholders, and the contingent payments under the agreement depend on certain pegozafermin milestones.
This acquisition is aimed at helping Roche compete in the MASH market, which has recently seen significant developments. Last month, Wegovy, a GLP-1 drug, received regulatory clearance for MASH, and in March 2024, Rezdiffra, a THR-beta agonist, was approved for the MASH indication.
In another notable move, AbbVie recently paid $1.2 billion for Gilgamesh Pharmaceuticals' lead psychedelic candidate for depression. Meanwhile, Novartis acquired Tourmaline Bio for $1.4 billion.
Pegozafermin ranks among BioSpace's seven most promising late-stage MASH candidates, indicating its potential in addressing this significant health concern. The Phase III ENLIGHTEN-Fibrosis study of pegozafermin was initiated by 89bio in March 2024, and its results will be eagerly awaited.
This acquisition underscores Roche's commitment to advancing innovative treatments and expanding its presence in the MASH market, offering hope for those affected by this condition.
