Roche to acquire 89bio in $3.5 billion obesity drug deal
Roche has agreed to acquire U.S.-based biopharmaceutical company 89bio in a deal worth up to $3.5 billion, underscoring the Swiss drugmaker’s push into the booming market for obesity and metabolic disease treatments.
Under the terms, Roche will pay $14.50 per share in cash and up to an additional $6 per share tied to certain milestones, bringing the total potential value to $3.5 billion. The offer represents a premium of nearly 80% over 89bio’s prior closing price. Shares of 89bio surged as much as 88% in premarket trading following the announcement.
Targeting a Growing Health Crisis
89bio’s lead asset is pegozafermin, an experimental therapy in late-stage development for metabolic dysfunction-associated steatohepatitis (MASH) — a progressive liver condition caused by fat accumulation. MASH can lead to cirrhosis, liver cancer, and even death. With global obesity and type 2 diabetes rates climbing, cases of MASH are rising rapidly.
“As we see a global rise in obesity and type 2 diabetes, we’re really seeing just an explosion of MASH patients,” said Teresa Graham, Roche’s head of pharmaceuticals.
Analysts view pegozafermin as a potential blockbuster therapy, one that could be combined with Roche’s existing pipeline of metabolic and cardiovascular drugs.
Fierce Competition Ahead
The market opportunity for MASH is estimated in the multibillions of dollars, drawing in heavyweights such as Novo Nordisk, Eli Lilly, and GSK. Novo’s GLP-1 therapy Wegovy, now cleared to treat MASH, is already a formidable competitor. Roche hopes pegozafermin’s direct mechanism of action will help it stand out in a crowded field.
Still, setbacks have been common in the race to treat MASH, previously known as NASH, with many companies struggling to show efficacy in late-stage trials. Roche is betting its expanded portfolio and combination strategies will give it an edge.
A Pattern of Bold Moves
The acquisition of 89bio adds to Roche’s recent string of big-ticket deals in metabolic disease research, including a $5.3 billion partnership with Zealand Pharma A/S and the $3.1 billion acquisition of Carmot Therapeutics Inc.
“The 89bio transaction brings a potential blockbuster that addresses a high-unmet medical need and offers itself for combo therapies with other Roche assets,” said Vontobel analyst Stefan Schneider.
The deal, backed by both companies’ boards, is expected to close in the fourth quarter of 2025.
Beyond Pharma: U.S. Tariff Pressures
Roche’s expansion comes as Switzerland’s pharmaceutical sector faces political scrutiny in the United States. The Trump administration has highlighted the industry as a contributor to Switzerland’s trade surplus with the U.S. Although exempt from a steep 39% tariff, Roche has pledged to invest $50 billion in the U.S. over the next five years to strengthen its local presence.
To further bolster its metabolic strategy, Roche recently hired Morten Lammert, a senior executive from Novo Nordisk, as global head for cardiovascular, renal, and metabolism.
Outlook
By acquiring 89bio, Roche gains not only a promising late-stage therapy but also a foothold in one of the most competitive and lucrative therapeutic areas today. With the stakes high and rivals already entrenched, Roche’s ability to execute on this deal will be closely watched by investors and industry peers alike.
