Roivant Sciences Inc. ROIVis a biotechnology company founded by Vivek RamaswamyHe is reportedly in talks with the Republican presidential candidate. Roche Holdings AG Ruby Regarding the possibility of marketing an investigational drug for debilitating gastrointestinal disease.
At the center of the talks is RVT-3101, a treatment for ulcerative colitis and Crohn’s disease.
The deal could total more than $7 billion and could be announced in the near future, according to people familiar with the matter.But negotiations are still ongoing The Wall Street Journal reportNegotiations may fall apart or another buyer may emerge.
Since its founding by Ramaswamy in 2014, Roivant has primarily focused on acquiring backlogged drugs and setting up subsidiaries for their development and commercialization.
Ramaswamy announced in February that he was stepping down from Roivant’s board to focus on the presidential campaign.
Roivant acquired RVT-3101, a gastrointestinal drug, through a deal with. Pfizer Japan Inc PFE. Last year, the companies announced that Roivant would establish a new subsidiary to fund the development of the drug, which is currently in the final Phase 3 trial.
In a recent study, Roivant reported results from a Phase 2b trial of this drug.
Pfizer owns a 25% stake in the subsidiary and retains commercial rights outside of the United States and Japan. However, it remains unclear what will happen to Pfizer’s shares if the deal goes through.
Ulcerative colitis and Crohn’s disease are chronic diseases caused by an overactive immune system that cause inflammation and ulcers in the large intestine and gastrointestinal tract.
These diseases affect up to 2 million people in the United States. Drugs targeting immune diseases represent an important market in the pharmaceutical industry, estimated to be worth approximately $40 billion worldwide.
If the Roivant deal goes through, it would be one of the key strategic steps taken by Roche CEO Thomas Sinecker since he took over as leader of the Swiss life sciences company in March.
Price action: ROIV shares rose 3.45% to $12.00 during last Friday’s premarket session.