Roche acquires obesity drug developer Carmot Therapeutics for $3.1bn
Swiss pharmaceutical company Roche is set to acquire obesity drug developer Carmot Therapeutics for $2.7 billion, with an additional $400 million contingent on meeting specific milestones. This move places Roche in direct competition with weight-loss drug giants Novo Nordisk and Eli Lilly. Carmot's most promising drug, CT-388, is a dual GLP-1/GIP receptor agonist, similar to Lilly's Mounjaro or Zepbound. The acquisition is expected to be finalized in the first quarter of 2024.
Carmot's CT-388 ready for Phase II clinical trials
Carmot's leading experimental drug, CT-388, has demonstrated promising results in Phase I trials and is now progressing to the second of three clinical trial stages. Roche believes that the existing data "suggests a best-in-class potential to achieve and maintain weight loss with differentiated efficacy." The acquisition also includes two other treatments, one being a pill that could revolutionize obesity treatment. The combined portfolio may also have applications in other areas, such as heart disease.
Roche joins global pharma giants in weight-loss market race
The weight-loss market is projected to reach $100 billion by the end of the decade, and Roche's acquisition of Carmot positions the company alongside other global pharmaceutical giants entering this profitable market. Pfizer is developing a weight-loss pill, while AstraZeneca recently signed a licensing deal with Chinese drug developer Eccogene for another experimental treatment. Roche's stock rose as much as 2.3% in early trading in Zurich following the announcement of the acquisition.
Carmot Therapeutics' portfolio and future integration
Carmot Therapeutics' current portfolio consists of clinical-stage gut-hormone drugs in pill and injection form, targeting obesity in patients with and without diabetes, as well as several preclinical programs. Upon closing the transaction, Roche will gain access to Carmot's entire R&D portfolio, including all clinical and preclinical assets. Carmot's employees will join Roche's pharmaceuticals division when the deal officially closes in early 2024.
