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(Sharecast News) - Shares in American clinical-stage biopharmaceutical company 89bio rocketed in pre-market trade on Thursday after Swiss pharma giant Roche struck a deal to buy the outfit for up to $3.5bn.
Known for its innovative therapies for the treatment of liver and cardiometabolic diseases, 89bio's pegozafermin product is seen as a "best-in-disease treatment" for moderate to severe Metabolic Dysfunction-Associated Steatohepatitis (MASH) - one of the most prevalent comorbidities of obesity.
According to Roche, the deal strengthens its presence in the cardiovascular, renal, and metabolic diseases (CVRM) market, - especially for patients affected by overweight, obesity and related health challenges - as well as offering "optionality for future combination development".
Roche is buying 89bio for $14.50 a share, representing an equity value of $2.4bn, though stockholders will also receive a non-tradeable contingent value right for up to an aggregate of $6.00 per share in cash, representing a total deal value of up to $3.5bn.
89bio, which closed Wednesday's session at $8.08, was up 84% pre-market at $14.84 by 0638 in New York, while Roche gained 0.2% to CHF261 in Zurich.
"This acquisition further strengthens our portfolio in cardiovascular, renal, and metabolic diseases and offers opportunities to explore combinations with existing programmes in our pipeline," said Thomas Schinecker, Roche's chief executive.
"We are highly encouraged by pegozafermin's potential to become a transformative treatment option in MASH, one of the most prevalent comorbidities of obesity, and to meet diverse patient needs associated with this complex disease."
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