Roche Buys Pfizer & Roivant Sciences' Televant In ~$7.1B Deal

Roche Holding AG RHHBY inked a deal to acquire Telavant Holdings, Inc. for $7.1 billion.

As per the terms, Roche will pay a purchase price upfront, along with a near-term milestone payment of $150 million. 

Telavant was jointly formed by Roivant Sciences Ltd ROIV and Pfizer Inc PFE in 2022 to develop and commercialize RVT-3101 in the U.S. and Japan.

RVT-3101, a novel TL1A-directed antibody, is a new therapy for people suffering from inflammatory bowel disease, including ulcerative colitis and Crohn's disease.

Post-deal closure, Roche will have full rights to develop further and manufacture RVT-3101 and commercialize it in the U.S. and Japan (pending clinical and regulatory success). 

In addition, Roche can enter into a global collaboration with Pfizer on a next-generation p40/TL1A-directed bispecific antibody (currently in Phase 1). 

The acquisition is projected to close in Q4 2023 or Q1 2024, subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other closing conditions.

As of June 30, 2023, Roche's cash and cash equivalents stood at CHF 7.5 billion. 

Last week, Roche reported nine months of sales growth of 1% (down 6% in CHF) to CHF 44.1 billion, even though the company had to compensate for the significant drop in sales of COVID-19 products and the biosimilar erosion (a total of CHF 4.0 billion or 9% of sales).

Price Action: RHHBY shares closed higher by 0.51% at $33.36 on Friday.