RHHBY to Acquire 89bio for $3.5B, Add Late-Stage MASH Drug to Pipeline

Roche (RHHBY) announced that it will acquire clinical-stage biopharmaceutical company 89bio, Inc. (ETNB) for $3.5 billion in a bid to augment its portfolio in cardiovascular, renal, and metabolic diseases (CVRM).

The acquisition will add 89bio’s pegozafermin to RHHBY’s pipeline. Pegozafermin is a glycoPEGylated analog of fibroblast growth factor 21 (FGF21), currently in late-stage development for metabolic dysfunction-associated steatohepatitis (MASH) in moderate and severe fibrotic patients (F2 and F3 stages) as well as cirrhotic patients (F4 stage).

The acquisition has been unanimously approved by the boards of Roche and 89bio. The deal is slated to be closed in the fourth quarter of 2025.

More on RHHBY’s Acquisition of ETNB

Per the terms of the merger, Roche will acquire 89bio for $14.50 per share in cash at closing, representing a total equity value of approximately $2.4 billion.

ENTB stockholders would also receive a non-tradeable contingent value right (CVR) for up to an aggregate of $6.00 per share in cash. This CVR will entitle its holders to receive cash payments, contingent upon the achievement of certain commercial milestones, within specified time periods. This includes $2.00 per share in cash, upon the first commercial sale of pegozafermin in F4 MASH cirrhotic patients (by March 31, 2030), $1.50 per share in cash, upon pegozafermin reaching annual net sales globally of at least $3.0 billion in any calendar year (by Dec. 31, 2033) and $2.50 per share in cash, upon pegozafermin reaching annual net sales globally of at least US$4.0 billion in any calendar year (by Dec. 31, 2035).

If all the conditions of the CVR are met, 89bio’s stockholders will receive an additional cash consideration of up to approximately $1.0 billion.

The acquisition price represents a premium of approximately 52% to 89bio’s 60-day VWAP price on Sept. 17, 2025. ETNB stock is surging in pre-market trading on Sept. 18.

Our Take on RHHBY’s Acquisition of 89bio

The 89bio acquisition will add a promising phase III candidate to RHHBY’s pipeline.

Pegozafermin offers a distinct mechanism of action with potential for enhanced efficacy and tolerability. The addition of pegozafermin also gives RHHBY opportunities for future combination development with incretins, creating synergies with its CVRM portfolio.

MASH is one of the most prevalent comorbidities of obesity. The successful development of pegozafermin will therefore provide a good revenue opportunity for RHHBY as obesity is currently one of the most lucrative spaces in the pharma space.

Roche’s shares have risen 20.4% year to date compared with the industry’s growth of 2.5%.

We remind investors that RHHBY has been looking to foray into the lucrative obesity space, albeit a little late. Earlier this year, the company entered into an exclusive collaboration and licensing agreement with Zealand Pharma to co-develop and co-commercialize petrelintide as a potential therapy for people with overweight and obesity.

The agreement with Zealand Pharma also allows for a range of potentially best-in-class therapy options as monotherapy and fixed-dose combination with Roche’s lead incretin asset CT-388.

Swiss giant Roche had earlier acquired Carmot Therapeutics and added three clinical-stage assets with best-in-class potential in obesity and diabetes.

Mergers and Acquisitions (M&A) have picked up a significant pace in 2025 in the pharma/biotech sector after a passive run in 2024.

The recent spree of acquisitions signifies a focus on portfolio expansion and constant pipeline innovation.

Another Swiss company, Novartis (NVS), has also been pretty active on the M&A front.

Earlier this month, Novartis announced that it will acquire Tourmaline Bio, a New York-based, clinical-stage biopharmaceutical company, for $1.4 billion. The acquisition will add a phase III-ready candidate, pacibekitug, to NVS’ cardiovascular pipeline.

In June 2025, Novartis acquired Regulus Therapeutics Inc., a clinical-stage biopharmaceutical company, for an upfront payment of $0.8 billion.

Meanwhile, in July 2025, GSK plc (GSK) acquired efimosfermin alfa from Boston Pharmaceuticals.

Efimosfermin is a novel, once-monthly FGF21 analog therapeutic in clinical development for the treatment of MASH, including cirrhosis, and future development in alcohol-related liver disease.

The addition of efimosfermin further expands GSK's pipeline to address fibroinflammatory diseases in liver, lungs and kidney.

RHHBY’s Rank

RHHBY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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