Biotech
Monday, December 4th, 2023 3:43 pm EDT
Key Points
- Roche’s Acquisition of Carmot Therapeutics: Roche, a Swiss pharmaceutical giant, is acquiring Carmot Therapeutics, an anti-obesity drug developer, in an effort to challenge the dominance of Novo Nordisk and Eli Lilly in the global weight-loss drugs market.
- Deal Terms and Early-Stage Technology: Under the deal, Carmot’s equity holders will receive $2.7 billion in cash at the transaction’s close, with the potential for an additional $400 million based on certain milestones. Roche sees potential in Carmot’s early-stage technology, especially in developing highly sought-after oral obesity treatments. However, Roche’s CEO, Teresa Graham, acknowledges that it may take several years before these drugs become widely available, estimating a timeframe beyond 2030.
- Carmot’s Drug Candidates and Obesity Market Dynamics: Carmot’s most promising drug candidate, CT-388, is a once-weekly injection belonging to the dual GLP1/GIP receptor agonists class, similar to Eli Lilly’s Mounjaro. Another candidate, CT-996, is a once-daily oral drug currently undergoing Phase 1 trials. The acquisition is part of Roche’s strategy to navigate the crowded obesity drugs market, estimated to be worth $200 billion within the next decade. Roche believes that with its expertise, it is well-positioned to re-enter the market and enhance its pipeline, particularly in collaboration with Carmot’s assets. The move comes as several pharmaceutical companies are trialing oral obesity treatments, with AstraZeneca recently announcing a significant investment in this area. However, Pfizer dropped plans for a twice-weekly pill due to increased side effects, highlighting the challenges in developing effective and safe treatments for obesity.
Swiss pharmaceutical giant Roche is set to acquire Carmot Therapeutics, an anti-obesity drug developer, in a bid to challenge the dominance of Novo Nordisk and Eli Lilly in the global weight-loss drugs market. The deal involves a $2.7 billion cash payment to Carmot’s equity holders at the transaction’s close, with the potential for an additional $400 million based on reaching specific milestones. Roche aims to tap into Carmot’s early-stage technology, particularly its oral obesity treatments, but expects it will be 2030 or later before these products are widely available. The acquisition grants Roche access to Carmot’s research and development portfolio, including clinical and preclinical assets.
Carmot’s most promising drug candidate, CT-388, is a once-weekly injection belonging to the dual GLP1/GIP receptor agonists class, similar to Eli Lilly’s Mounjaro. After positive Phase 1 trial results, CT-388 is set to undergo human testing in the second stage of three trials. Carmot’s once-daily oral candidate, CT-996, currently in Phase 1 trials, could differentiate Roche in the competitive obesity drugs market.
Despite ongoing trials of oral obesity treatments by various pharmaceutical companies, analysts express caution about their efficacy. Pfizer recently abandoned plans for a twice-weekly pill due to increased side effects. The global obesity market is estimated to be worth $200 billion within the next decade, attracting new entrants while existing leaders Novo Nordisk and Eli Lilly face challenges meeting rising demand.
Roche, a pioneer in GLP-1 treatments over a decade ago, re-enters the market, emphasizing its expertise in diabetes diagnostics. Roche Pharmaceuticals CEO Teresa Graham views the acquisition of Carmot as an exciting addition to Roche’s diverse pipeline, leveraging their experience to address the obesity market’s evolving landscape.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/04/roche-enters-obesity-market-with-carmot-takeover.html
