Swiss healthcare company Roche Holdings (RHHBY) will acquire Telavant Holdings, a company jointly owned by Roivant Sciences (NASDAQ: ROIV) and Pfizer (PFE), for a $7.1 billion upfront payment and a near-term milestone payment of $150 million.
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As a part of this agreement, Roche will acquire the development, manufacturing, and commercialization rights in the United States and Japan for RVT-3101. Outside the U.S. and Japan, Pfizer will hold the commercialization rights for the drug. RVT-3101 is an antibody currently under development that can be used in the treatment of people suffering from inflammatory bowel disease, including ulcerative colitis and Crohn’s disease.
Roche is committed to starting a Phase 3 trial for RVT-3101 as soon as possible. In addition, Roche will also “have an option to enter into a global collaboration with Pfizer on a next-generation p40/ TL1A directed bispecific antibody, currently in Phase 1.”
Is ROIV Stock a Good Buy?
Following the news of the acquisition, ROIV stock gained in pre-market trading on Monday and has increased by more than 30% year-to-date. Overall, analysts are bullish about ROIV stock, with a Strong Buy consensus rating based on seven Buys and one Hold. The average ROIV price target of $16.83 implies an upside potential of 74.2% from current levels.
