Roche Enters Obesity Market Through Carmot Therapeutics Acquisition

Swiss pharma company Roche recently announced a strategic $2.7 billion deal to acquire U.S.-based Carmot Therapeutics, indicating its entry into the obesity market.

Roche will pay the sum in cash upon closing and may provide further milestone payments of up to $400 million to equity holders. The acquisition allows Roche access to the obesity sector and Carmot’s unique portfolio of incretins: CT-388, CT-996, and CT-868. These incretins are under various stages of research for obesity treatment for patients with or without type 2 diabetes. The portfolio might extend to include conditions such as cardiovascular, retinal, and neurodegenerative diseases.

In addition to Carmot’s incretin portfolio, Roche will secure exclusive access to its novel Chemotype Evolution discovery platform, bolstering its research and development efforts in cardiovascular and metabolic diseases. Despite the promising acquisition, Roche’s shares have declined by 12.2% YTD, contrasting with the industry’s 4.8% growth.

The obesity market has lately been a hotbed of interest, fueling drugs like Novo Nordisk’s Wegovy and Eli Lilly’s Mounjaro (tirzepatide), among others. Wegovy has seen remarkable demand on the global stage, bolstering Novo Nordisk. On the other hand, Mounjaro, approved in 2022, improves glycemic control in adults with type 2 diabetes when combined with diet and exercise. The FDA recently approved tirzepatide, branded as Zepbound, for adults struggling with obesity or overweight issues, alongside weight-related health conditions like hypertension, dyslipidemia, type 2 diabetes mellitus, obstructive sleep apnea, or cardiovascular disease.

However, the obesity market isn’t without its challenges. Pfizer recently experienced a disappointment after its weight loss pill, danuglipron, exhibited side effects in its phase III studies. Despite significant reductions in body weight, the study recorded high rates of gastrointestinal side effects, resulting in high discontinuation rates and the consequent decision by Pfizer not to progress with danuglipron.