Roche Commits $3.5 Billion to Bolster MASH Portfolio via 89bio Acquisition

Roche has announced its plan to acquire 89bio, a San Francisco-based biotechnology firm, in a strategic move valued at approximately $3.5 billion. The agreement includes an upfront cash payment of $14.50 per share, totaling $2.4 billion, with shareholders eligible for an additional $6.00 per share tied to achieving specific commercial and sales milestones. The transaction is anticipated to conclude in the fourth quarter of 2025.

The primary asset driving the acquisition is pegozafermin, 89bio’s flagship drug candidate. Pegozafermin is an analogue of fibroblast growth factor 21 (FGF21) and is currently undergoing Phase III clinical trials for the treatment of moderate to severe Metabolic Dysfunction-associated Steatohepatitis (MASH).

This acquisition is central to Roche’s broader ambition to establish itself as a leader in the treatment of cardiovascular and metabolic (CVRM) diseases. A company spokesperson emphasized that the deal provides Roche with a competitive edge by securing an FGF21 analogue with a unique mode of action and a promising safety profile for MASH patients. Roche sees the potential for pegozafermin to excel as a monotherapy and to be integrated into combination therapies, creating valuable synergies with the company’s existing CVRM portfolio.

While the company refrained from commenting on exact revenue forecasts, it expressed confidence that pegozafermin has the potential to become a large, multi-billion dollar commercial opportunity. An analyst at RBC Capital Markets independently projects that the drug could reach $2.1 billion in peak annual sales.

The purchase of 89bio builds upon Roche’s recent strategic focus on CVRM, following earlier investments and collaborations with entities like Alnylam, Carmot, and Zealand Pharma. The acquisition also aligns with Roche’s strategy to strengthen its pipeline through external innovation in defined therapeutic areas.

Furthermore, the investment is part of a larger push by Roche to consolidate its market position in the United States, where the company is committing $50 billion over five years to pharmaceutical and diagnostics sectors. Roche emphasized its long-standing roots and comprehensive operations—including research, development, and production facilities—across the US.

Source: https://www.bioxconomy.com/partnering/roche-invests-3-5bn-to-mash-fatty-liver-disease