Roche Secures 89bio Acquisition in $3.5 Billion Deal, Expanding MASH Pipeline

Roche has successfully acquired 89bio in a deal worth up to $3.5 billion, marking a significant expansion of its metabolic dysfunction-associated steatohepatitis (MASH) pipeline. The acquisition comes after an extensive courtship process involving multiple pharmaceutical companies and months of negotiations.

Competitive Landscape and Negotiation Process

89bio, a biotech company focused on developing treatments for MASH, found itself at the center of industry attention following promising data releases in the FGF21 analog drug class. Over a three-year period, the company entered into confidentiality agreements with 14 global and regional biopharmaceutical companies, highlighting the intense interest in their lead candidate, pegozafermin.

The negotiation process intensified in early 2025, sparked by the release of data from Akero Therapeutics' rival drug candidate. This development reignited excitement about FGF21 analogs, prompting Roche to form a cross-functional team to explore a potential deal for pegozafermin.

Throughout the spring and summer of 2025, 89bio engaged in discussions with multiple companies. However, by July, five global biopharma companies had declined to pursue a deal, leaving Roche as the primary contender.

Deal Structure and Valuation

The final agreement between Roche and 89bio came after several rounds of negotiations, with both parties working to find a mutually acceptable valuation. Key aspects of the deal include:

• An initial offer from Roche of $13 per share, which was deemed insufficient by 89bio
• 89bio's counter-proposal of over $20 per share
• Roche's revised offer of $14 per share plus $2 per share tied to pegozafermin's first sale for stage 4 MASH treatment
• Further negotiations leading to additional success-based payments and a $0.50 increase in the upfront offer
• A final package that exceeded 89bio's $20 per share target through a combination of upfront payment and success-based incentives

Implications for MASH Treatment Landscape

The acquisition of 89bio by Roche represents a significant development in the MASH treatment landscape. Pegozafermin, now entering Roche's pipeline, is poised to become a key player in addressing this growing health concern.

The deal also underscores the increasing competition and consolidation in the MASH drug development space, with major pharmaceutical companies vying for promising candidates. As the prevalence of MASH continues to rise globally, the race to bring effective treatments to market intensifies, potentially benefiting patients and healthcare providers in the coming years.