HomeMarket NewsRoche's Acquisition of Telavant Expands Pipeline with Innovative Bowel Disease Therapy

Roche’s Acquisition of Telavant Expands Pipeline with Innovative Bowel Disease Therapy

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Roivant Sciences (NASDAQ:ROIV) announced on Monday that it has reached an agreement with Roche (OTCQX:RHHBY) to acquire Telavant Holdings, a company specializing in the development of revolutionary treatments for inflammatory bowel diseases. The deal, valued at $7.1 billion upfront along with a near-term milestone payment of $150 million, will give Roche access to Telavantโ€™s innovative therapy RVT-3101.

The treatment, which is currently in clinical trials, focuses on addressing the needs of patients suffering from ulcerative colitis and Crohnโ€™s disease. Its unique approach tackles both inflammation and fibrosis, making it potentially effective in treating various other diseases as well.

Telavant was initially established as a joint venture between Roivant Sciences (ROIV) and Pfizer (NYSE:PFE) to develop and commercialize RVT-3101 in the United States and Japan. Currently, Roivant holds a 75% stake in Telavant, while Pfizer owns the remaining 25%.

Following the completion of the acquisition, Roche will assume all development, manufacturing, and commercialization responsibilities for RVT-3101 in the U.S. and Japan, pending regulatory approval. Pfizer will retain commercialization rights for the therapy outside of these regions.

Roche has ambitious plans for RVT-3101, with a global Phase 3 trial slated to commence soon after the dealโ€™s closure. Additionally, Roche will have the option to collaborate with Pfizer on a next-generation p40/TL1A directed bispecific antibody, currently in Phase 1.

While the acquisition is subject to the Hart-Scott-Rodino waiting period, it is expected to be finalized in either Q4 2023 or Q1 2024, marking a significant milestone in Rocheโ€™s pursuit of innovative therapies for patients with serious medical conditions.

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