Carmot Therapeutics Inc. (Carmot), a biotechnology firm in the clinical stage dedicated to developing transformative therapeutics for individuals facing metabolic diseases like obesity and diabetes, has declared a definitive merger agreement with Roche. As per the agreement, Roche will acquire Carmot for an upfront purchase price of $2.7 billion, along with the potential for an additional $400 million in milestone payments.

Heather Turner, JD, Chief Executive Officer of Carmot, expressed satisfaction with the pipeline developed for obesity and diabetes, highlighting the potential for impactful interventions in patients' metabolic journeys. Turner is confident that Roche's involvement will facilitate robust program development and contribute to the realization of Carmot's goal of delivering life-changing therapeutics for metabolic diseases.

Carmot's clinical pipeline includes subcutaneous and oral incretins with best-in-class potential for treating obesity in patients with or without diabetes. Key candidates include CT-388, a Phase 2 ready, weekly injectable dual GLP-1/GIP receptor agonist, and CT-996, a Phase 1 oral small molecule GLP-1 receptor agonist. Additionally, CT-868, a Phase 2 subcutaneous injectable dual GLP-1/GIP receptor agonist, is intended for treating type 1 diabetes patients with overweight or obesity. Carmot also has preclinical programs for addressing metabolic diseases.

Addressing the global obesity epidemic, Tim Kutzkey, PhD, Chair of Carmot's Board of Directors, stressed the magnitude of the health crisis and the need for significant commitment and resources. Kutzkey believes that the collaboration between Carmot's pipeline and Roche's drug development expertise, resources, and global reach will best serve patients.

The terms of the agreement stipulate that Roche will pay $2.7 billion in cash to Carmot's equity holders at the transaction's closing, with an additional $400 million contingent on achieving specific milestones. Carmot and its employees will become part of the Roche Group under its Pharmaceuticals Division.

The completion of the transaction is contingent on the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions. The transaction is anticipated to conclude in the first quarter of 2024. Financial advisory services are being provided by Centerview Partners LLC and J.P. Morgan Securities LLC, with legal counsel from Cooley LLP for Carmot.

 

Source: globenewswire.com

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