Roche, the Swiss pharmaceutical titan, has made a strategic move into the competitive GLP-1 therapy market with its acquisition of Carmot Therapeutics, a deal valued at $2.7 billion with an additional $400 million tied to milestone achievements. This acquisition not only bolsters Roche’s portfolio with promising incretin-based therapies but also grants it access to Carmot’s innovative research and development pipeline.
The transaction, announced on Monday, positions Roche at the forefront of the ‘diabesity’ treatment landscape—a sector witnessing burgeoning interest from major pharmaceutical players. Roche’s investment secures three pivotal incretin assets from Carmot, including CT-388, a Phase-2 ready, weekly-administered dual GLP-1/GIP receptor agonist. CT-388 shows promise for obesity management in patients with and without type 2 diabetes and has potential for further indication expansion.
Additionally, Roche has acquired CT-996, an oral GLP-1 receptor agonist in Phase-1 trials, and CT-868, a Phase-2 injectable dual GLP-1/GIP receptor agonist for type 1 diabetes patients with concurrent overweight or obesity issues. These assets complement Roche’s existing pharmaceutical pipeline and diagnostic expertise, particularly in cardiovascular and metabolic diseases.
Thomas Schinecker, Roche’s CEO, emphasized the significance of addressing obesity—a complex and multifaceted health challenge with global implications. He stated, “By combining Carmot’s portfolio with programs in our Pharmaceuticals pipeline and our Diagnostics expertise and portfolio of products across cardiovascular and metabolic diseases, we are aiming to improve the standard of care and positively impact patients’ lives.”
The acquisition also includes access to Carmot’s Chemotype Evolution discovery platform, which could further enhance Roche’s capabilities in metabolism research. As part of the integration, Carmot’s employees will join Roche’s Pharmaceuticals Division, with the deal’s completion anticipated in Q1 2024, subject to standard closing conditions.
Roche’s move comes as the company prepares for a post-COVID era, with revenues from pandemic-related treatments declining. The company recently reported a 7% growth in group sales, driven by flagship treatments, but noted an 18% decrease in diagnostics division sales. Despite this, Roche projects strong growth in its base business, excluding COVID-related sales drops.
The pharmaceutical industry has seen a surge in interest for obesity and diabetes treatments, with companies like Eli Lilly and Novo Nordisk leading the ‘diabesity’ market. Other firms are also making significant investments; AstraZeneca recently acquired a GLP-1 drug candidate from Eccogene for $185 million, with potential additional payouts of $1.3 billion. Pfizer, on the other hand, has shifted focus to a once-daily version of its obesity drug danuglipron after Phase 2b trials.
Roche’s acquisition of Carmot Therapeutics marks a significant step in the company’s expansion within the metabolic disease space, reflecting the industry’s broader shift towards innovative treatments for obesity and diabetes.
