Swiss pharmaceutical titan Roche Holding AG is striking a decisive chord in the biotech arena, announcing Thursday that it will acquire U.S.-based 89bio Inc. in a deal worth up to $3.5 billion. The blockbuster purchase aims to expand Roche’s foothold in cardiovascular, renal and metabolic disease treatments—fields that are increasingly commanding the spotlight as global health challenges surge.
Roche, already the world’s largest biotech player, will fork out about $2.4 billion upfront for the clinical-stage company. The remainder, close to $1.1 billion, hangs on undisclosed milestones.
Strategic Bet on Liver and Metabolic Therapies
“This acquisition fortifies our pipeline in cardiovascular, renal, and metabolic diseases and opens the door to potential synergies with our existing programs,” said Thomas Schinecker, Roche’s CEO.
Legal heavyweights are steering the ship: Sidley Austin LLP is advising Roche, while Gibson Dunn & Crutcher LLP is representing 89bio, led by partners Branden Berns, Ryan Murr, and Evan D’Amico.
Roche has agreed to purchase all 89bio shares listed on Nasdaq at $14.50 apiece in cash, with the sweetener of up to an additional $6 per share contingent on the commercial success of pegozafermin—the company’s lead drug candidate—and sales benchmarks through 2035.
That offer represents a 52% premium over 89bio’s 60-day average share price as of Wednesday, a hefty windfall for investors.
