(CTN News) – A Swiss pharmaceutical company, Roche, has announced Monday that it will pay $7 billion for Telavant Holdings, a company that develops new treatments for inflammatory bowel diseases.
Today, Roivant, a British laboratory, and Pfizer, a major American pharmaceutical company, are the two companies that jointly own the company.
As part of the agreement, the company has been granted “development, manufacturing, and commercialisation rights in the US and Japan” over the antibody RVT-3101, which is intended to treat inflammatory bowel diseases such as ulcerative colitis and Crohn’s disease.
Currently, there is a clinical trial being conducted to determine the efficacy of this antibody in order to determine its potential as a treatment for cancer.
In the course of the transaction, Roche will likely pay an upfront purchase price of $7.1 billion and a near-term milestone payment of $150 million as part of the transaction.
A Roche spokesperson said that the antibody could also be used to treat a variety of other diseases, and it seeks to make it available to patients “as quickly as possible”.
As the CEO of Roche, Thomas Schinecker, stated, “We strongly believe that this novel TL1A directed antibody has the potential to make a significant difference for patients suffering from inflammatory bowel disease and potentially other diseases as well,” he added.
A new company called Telavant has been created by Roivant, a company owned by 75 percent of the shares, and Pfizer, a company owned by 25 percent of the shares, in the past year.
What is the purpose of Roche Pharma?