Swiss pharmaceutical company
said Monday it has agreed to buy immunology company Telavant Holdings from
in a $7.1 billion deal.
Shares in Roivant Sciences (ticker: ROIV), which has a 75% stake in Telavant, surged 15% in premarket trading.
Telavant, which has a promising drug candidate to treat inflammatory bowel disease, was jointly formed last year by Roivant Sciences and Pfizer (PFE). It was created to develop and commercialize the drug, known as RVT-3101, in the U.S. and Japan.
Roche (ROG.Switzerland) will take on the rights to develop and commercialize it in the U.S. and Japan pending regulatory success. The Swiss company will pay a near-term milestone payment of $150 million on top of the $7.1 billion.
Roche said Pfizer owns the remaining 25% stake in Telavant, and that it holds commercialization rights outside the U.S. and Japan. The agreement also includes the option for Roche to collaborate with Pfizer on a next-generation antibody currently in early-stage trials.
Roivant Sciences stock looked to be the big winner from the deal in early trading Monday. Pfizer stock pointed 0.5% higher ahead of the open, while shares in Roche were flat in European trading.
Write to Callum Keown at [email protected]
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