Roche has agreed to acquire Carmot Therapeutics, a Berkeley, California-based bio/pharmaceutical company, in a deal worth $3.1 billion ($2.7 billion at closing plus $400 million in potential milestone payments). 

The pending acquisition would provide Roche with three clinical-stage assets with potential in treating obesity and diabetes. These include: (1) CT-388, a once weekly subcutaneous injectable in Phase II, for treating obesity in patients with and without Type 2 diabetes; (2) CT-996, a once-daily oral small-molecule drug, in Phase I, for treating obesity in patients with and without Type 2 diabetes; and (3) CT-868, a once-daily subcutaneous injectable, in Phase II, for treating Type 1 diabetes patients with overweight or obesity. These drug candidates are incretins, which are gut hormones that are secreted after food intake and play a role in modulating blood glucose by stimulating insulin secretion and suppressing appetite. The incretin-based portfolio could also be expanded to other indications where incretins play a role, including cardiovascular, retinal, and neurodegenerative disease. 

Under the agreement, Roche will pay Carmot’s equity holders a purchase price of $2.7 billion in cash at the closing of the transaction. Additionally, Carmot’s equity holders are entitled to receive payments of up to $400 million depending on the achievement of certain milestones. Upon closing of the transaction, Roche will obtain access to Carmot’s current R&D portfolio, including all clinical and pre-clinical assets, with Carmot and its employees joining the Roche Group as part of Roche’s Pharmaceuticals Division. 

The transaction is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions. The closing of the transaction is currently expected to take place in the first quarter of 2024. 

Source: Roche