Roche to challenge Merck in IBD via $7.1B Telavant takeout

Roche’s $7.1 billion deal for Roivant’s Telavant subsidiary is the latest in the rapidly strengthening field of TL1A inhibitors for autoimmune disease, with clinical data in IBD driving pharmas’ interest in the class.

The takeout delivers a quick, high-multiple return on an investment by Roivant Sciences Ltd. (NASDAQ:ROIV), which set up Telavant to house rights in the U.S. and Japan to an asset in-licensed from Pfizer Inc. (NYSE:PFE) in a deal announced in early December 2022. By contributing $45 million and pledging to contribute to ongoing development, Roivant obtained a 75% stake in the venture, while Pfizer held 25%...