Roche to acquire Carmot Therapeutics in $3.1 billion deal

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Roche to acquire Carmot Therapeutics in $3.1 billion deal
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Biotechnology giant Roche (RHHBY (OTC: RHHBY )) will acquire obesity drug maker Carmot Therapeutics in a $3.1 billion deal, it was announced Monday.

The agreement will see Roche pay $2.7 billion for Carmot, with the potential for a further $400 million in milestone payments. The deal is expected to close in the first quarter of 2024.

Carmot will join Roche's pharmaceutical division, with the company stating it believes the deal will help it further develop its programs. Carmot's current pipeline includes subcutaneous and oral incretins with the potential to treat obesity in patients with and without diabetes.

"The obesity epidemic is a worldwide crisis and only continues to worsen. By 2035, it is estimated that nearly half the world's population will be overweight or obese," said Tim Kutzkey, Chair of Carmot's Board of Directors.

"A health problem of this magnitude requires significant commitment and resources to address, and we believe that patients will be best served with Carmot's pipeline backed by the drug development expertise, extensive resources and worldwide reach of Roche."

Roche's Switzerland-listed shares are up 2% so far on Monday.

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