On Monday, the Swiss pharmaceutical company Roche announced that it will acquire Telavant Holdings, a company that is creating novel treatments for inflammatory bowel disorders, for $7.1 billion.
Currently, American pharmaceutical behemoth Pfizer and British laboratory Roivant own the business.
Included in the agreement are the “development, manufacturing, and commercialization rights in the US and Japan” for the antibody RVT-3101, which is used to treat Crohn’s disease, ulcerative colitis, and inflammatory bowel disease.
Clinical trials for the antibody are presently being conducted.
Under the deal, Roche will pay a purchase price of $7.1 billion upfront and a near-term milestone payment of $150 million.
Roche said the antibody also has “potential to be applied in multiple other diseases” and it wants to make it available to patients “as quickly as possible”.
“We strongly believe this novel TL1A directed antibody has the transformational potential to make a significant difference for patients living with inflammatory bowel disease and potentially other diseases,” said Thomas Schinecker, CEO of Roche.
Telavant was created last year by Roivant which holds 75 percent of the shares and Pfizer, which owns 25 percent.
