Carmot Therapeutics Inc. announced on December 4 that it entered into a definitive merger agreement to be acquired by Roche Holding AG at a purchase price of $2.7 billion upfront and the potential for $400 million in milestone payments.
Carmot Therapeutics is a biotechnology firm with injectable dual GLP-1/GIP receptor agonists and an oral GLP-1 drug in clinical development. The biotechnology company filed to go public in November 2023.
Roche Holding AG, commonly known as Roche, operates in the pharmaceuticals and diagnostics businesses worldwide. The company’s headquarters are located in Basel, Switzerland. According to its 2022 annual report, Roche’s net sales during 2022 was CHF 63.3 billion, or approximately $68.4 billion USD.
Carmot and its employees will join the Roche Group as part of Roche’s Pharmaceuticals Division. Centerview Partners LLC and J.P. Morgan Securities LLC are acting as financial advisors and Cooley LLP is acting as legal counsel for Carmot. The transaction is expected to close in the first quarter of 2024.
According to data captured in the LevinPro HC database, this transaction represents the 147th Biotechnology transaction of the year. This also marks the tenth-largest Biotechnology transaction by purchase price for the year. In October 2023, Roche announced another multi-billion dollar deal with its acquisition of Telavant Holdings, which was jointly formed by Roivant and Pfizer in 2022, for $7.1 billion.
