Roivant Sciences sells its joint venture with Pfizer to Roche for $7.1 billion

Takeaways

Roivant has agreed to sell its Telavant joint venture with Pfizer to Roche for $7.1 billion.
The deal gives Roche the rights to Telavant's promising antibody treatment for inflammatory diseases of the intestine in the United States and Japan.
The agreement also includes the option for Roche to partner with Pfizer on another antibody treatment.

London-based biotechnology company Roivant Sciences (ROIV) has agreed to sell its Telavant Holdings unit, owned in co-owned by Pfizer (PFE), to Roche Holding for $7.1 billion.

The agreement gives Roche the development, manufacturing and marketing rights in the United States and Japan for its investigational antibody treatment RVT-3001 for patients with inflammatory bowel diseases, including ulcerative colitis and Crohn's disease. Outside of the United States and Japan, Pfizer holds marketing rights.

RVT-3001 has shown success in a Phase 2b study, and Roche is expected to begin a Phase 3 study as soon as possible.

The CEO of the Roche group, Thomas Schinecker said the drugmaker is “excited to add this promising new therapy” to its portfolio and hopes to quickly make it available to patients.

Roviant is expected to receive $150 million in the near future. -term payment. The deal also gives Roche the opportunity to enter into a global collaboration with Pfizer on another antibody drug currently in phase 1 study.

The transaction is expected to close this year or in the first quarter of 2024.

Roivant Sciences shares lose ground and fall by 8.8% at 2:30 p.m. ET, while Pfizer shares rose 1.5%.