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Swiss pharmaceutical company Roche announced on Thursday that it has agreed to acquire U.S.-based biotech firm 89bio for up to $3.5 billion, a move aimed at strengthening its research and development portfolio in liver and cardiometabolic disease treatments.
Under the agreement, Roche will acquire all outstanding shares of 89bio at $14.5 per share in cash, valuing the company’s equity at approximately $2.4 billion. In addition, shareholders will receive a non-tradeable contingent value right (CVR) of up to $6 per share, which could raise the total transaction value to about $3.5 billion if future milestones are met.
The deal, approved unanimously by both companies’ boards, is expected to close in the fourth quarter of 2025, subject to customary regulatory clearances and shareholder acceptance.
In a statement, Roche explained the key reason behind the investment as 89bio's developing portfolio in pegozafermin, a late-stage experimental drug targeting metabolic dysfunction-associated steatohepatitis (MASH).
MASH is a severe form of fatty liver disease linked to obesity and type 2 diabetes, affecting an estimated 5% to 7% of the global adult population. The condition can progress to cirrhosis, liver failure, or liver cancer if untreated.
Pegozafermin, a glycoPEGylated analog of fibroblast growth factor 21 (FGF21), has shown potential as a treatment for moderate to severe MASH patients, including those with advanced fibrosis and cirrhosis. Roche emphasized that the therapy’s anti-fibrotic and anti-inflammatory properties could make it a leading option in the field.
Roche Group CEO Thomas Schinecker said the acquisition will bolster the company’s cardiovascular, renal, and metabolic disease portfolio, while also opening the door to combination therapies with other drugs under development.
The deal comes at a time when global pharmaceutical companies are stepping up investments in U.S. production and research capacity. Industry leaders, including GSK, Eli Lilly, Johnson & Johnson, and AstraZeneca, have pledged more than $350 billion in U.S. investments in response to both supply chain challenges during the COVID-19 pandemic and potential new tariffs under the Trump administration.
Previously, Rocheannouncedthat it would invest $50 billion in the United States over the next five years to mitigate the impact of the Trump administration's tariffs targeting pharmaceuticals.
Following the latest acquisition announcement, 89bio’s shares rose 18.5% in after-hours trading on the Nasdaq, lifting its market capitalization to $1.2 billion.
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