Roche Acquires Telavant Holdings in $7.1 Billion Deal

Swiss pharmaceutical giant Roche has announced its acquisition of immunology company Telavant Holdings in a deal worth $7.1 billion. The agreement, which includes multinational pharmaceutical company Pfizer, will grant Roche the rights to develop and commercialize Telavant's promising drug candidate for inflammatory bowel disease.

Telavant Holdings, formed jointly by Roivant Sciences and Pfizer last year, was specifically created to advance and market the drug RVT-3101 in the United States and Japan. Pending regulatory success, Roche will handle the development and commercialization of the drug in these two regions, with a near-term milestone payment of $150 million on top of the acquisition cost.

While Roche takes on the majority 75% stake in Telavant Holdings, Pfizer retains a 25% stake and retains the commercialization rights outside of the United States and Japan. Additionally, as part of the agreement, Roche has the option to collaborate with Pfizer on a next-generation antibody currently undergoing early-stage trials.

Following the announcement, shares of Roivant Sciences spiked by 15% during premarket trading. Pfizer saw a modest 0.5% increase in stock price, whereas Roche remained steady in European trading.