Roche has acquired U.S. biotech firm 89bio for up to $3.5 billion, expanding into liver disease treatments to complement their focus on weight-loss drugs. The deal includes a non-tradeable contingent value right, valuing the acquisition at $2.4 billion initially. 89bio’s leading drug, pegozafermin, targets fatty liver disease.

The acquisition marks Roche’s commitment to advancing therapies in cardiovascular, renal, and metabolic diseases, particularly for those overweight or fighting obesity and related issues like fatty liver. The deal reflects Roche’s strategy to address common comorbid conditions with obesity, as stated by Teresa Graham, head of Roche’s pharmaceutical division.

Roche’s deal with 89bio is part of a trend of intense deal activity in the field of liver disease treatments and weight-loss drugs. The company recently acquired rights to an obesity therapy from Zealand Pharma and a weight-loss drug developer, Carmot. Other firms, like GSK and Akero Therapeutics, are also actively involved in developing treatments for liver diseases.

Analysts highlight the strategic value of differentiated MASH assets in the Roche-89bio deal. Roche sees potential in 89bio’s compound, believing it could offer best-in-disease efficacy and convenience. Roche plans to explore combining pegozafermin with weight-loss drug candidates in addition to their mono-therapy trial program, aiming to enhance treatment options.

Read more at Yahoo Finance: Roche to acquire liver drug developer 89bio for up to $3.5 billion