Topline
Swiss pharmaceuticals company Roche agreed to acquire U.S.-based weight-loss drugmaker Carmot Therapeutics, which develops anti-obesity and diabetes drugs, for $2.7 billion, according to a press release, as drug makers seek to challenge Novo Nordisk and Eli Lilly, which remain the dominant players in the weight-loss drug industry—although Carmot’s drugs likely won’t be widely available for years.
Roche said Carmot Therapeutics’ research and development portfolio “has great potential to treat ... [+]
Key Facts
The merger gives Roche access to privately owned, Berkeley, Calif., based Carmot’s portfolio, which includes its leading drug candidate, CT-388, which can treat obesity in patients with and without type 2 diabetes, and could potentially become a competitor to the similar and recently FDA-approved weight-loss drug Zepbound from Eli Lilly.
CT-388 and Zepbound are GLP-1 (glucagon-like peptide-1) receptor agonists which activate hormone receptors that reduce appetite and food intake, and both drugs mimic the GIP (glucose-dependent insulinotropic polypeptide) hormone that helps release insulin to control blood sugar levels after eating.
Carmot’s portfolio of candidate drugs also includes one GLP-1 receptor agonist in development that is intended to treat obesity in patients with and without type 2 diabetes, and another dual GLP-1/GIP receptor agonist intended to treat patients with type 1 diabetes who are overweight or obese.
CT-388 “demonstrated substantial weight loss” in an early clinical phase, Levi Garraway, Roche’s Chief Medical Officer and Head of Global Product Development said, adding that the data suggests the drug has potential to treat obesity and diseases related to it.
Beyond weight-loss and diabetes treatments, other drug candidates in Carmot’s portfolio could be combined with Roche’s drug developments to focus on other benefits such as preserving muscle mass, according to its press release.
Under the agreement, Carmot’s shareholders will receive $2.7 billion in cash when the deal closes, and could eventually receive up to another $400 million “depending on the achievement of certain milestones.”
Key Background
Roche previously tried entering the weight loss drug market over a decade ago with a drug called taspoglutide, but gave up on the drug after “unacceptable levels of nausea/vomiting, injection-site reactions, and systemic allergic reactions,” biopharma industry news source Endpoints News reported. In September, Bloomberg reported pharmaceutical companies were interested in buying Carmot at a valuation of $1 billion, and the company had filed to go public by the end of this year amid broad interest in obesity drugs. Carmot’s most advanced drug candidates are still in mid-stage trials. Danish drugmaker Novo Nordisk, which is leading the weight-loss drug industry with its Wegovy injection, said last month it is spending $6 billion to increase its manufacturing capacity to keep up with growing demand for Wegovy and its diabetes treatment drug Ozempic. Meanwhile, Eli Lilly recently received FDA approval for its Mounjaro diabetes drug to be used as a weight loss treatment under the name Zepbound. Pharmaceutical companies have sought acquisitions of biotech companies developing weight loss drugs this year amid high demand. Last month, pharmaceutical giant AstraZeneca announced it was paying $185 million to Chinese company Eccogene for rights to an experimental weight-loss pill, Endpoints News reported. Both Novo Nordisk and Eli Lilly have sought acquisitions of smaller companies, with Novo Nordisk acquiring Embark Biotech, and Eli Lilly acquiring Versanis Bio and Sigilon Therapeutics, Endpoints News reported.
What To Watch For
Carmot’s CT-388 drug candidate, which had encouraging results from its Phase I trial, is ready to be tested on humans in a second of three trials, and could come to market in the 2030s, Teresa Graham, head of Roche’s pharmaceuticals division, told Reuters.
Further Reading
FDA Approves Diabetes Drug Mounjaro For Weight Loss Under Brand Name Zepbound (Forbes)
