Roche signs deal to acquire Schroders’s Carmot Therapeutics for upto $3.1 billion

LONDON, UK: Schroders Capital’s portfolio company Carmot Therapeutics Inc. has entered into a definitive agreement to be acquired by Roche, a global pharmaceutical company, at a purchase price of $2.7 billion upfront and the potential for $400 million in milestone payments, a bourse filing noted.

The agreement is expected to close in the first quarter of 2024, subject to customary closing conditions and required regulatory approvals. Full details of the profit on sale will be released in due course.

In May 2023, the Company made a $1.7m investment into Carmot, via Harbour 25, as part of its $150m Series E funding round to support development of Carmot’s broad clinical-stage metabolic pipeline, including two phase 2 trials of CT-388, a once weekly, dual GLP-1/GIP receptor modulator for obese adults with and without type 2 diabetes.

Carmot’s Series E round was led by Deep Track Capital and supported by a syndicate of new and existing healthcare investors including 5AM Ventures, Franklin Templeton, Frazier Life Sciences, Janus Henderson Investors, RA Capital Management, Millennium Management, TCGX, The Column Group, Venrock Healthcare Capital Partners and Willett Advisors.

Tim Creed, Lead Portfolio Manager, and Harry Raikes, Co-Portfolio Manager commented: “We chose to invest in Carmot Therapeutics based on its compelling assets, which are backed by robust clinical data. The company operates in the rapidly expanding GLP1 space, which has garnered significant attention worldwide.

Overall, the company fulfilled our four key investment criteria: a strong management team, a significant market opportunity, high quality science and reputable co-investors. We are delighted by the news of this sale, which has occurred earlier than expected but reflects the unique nature of Carmot’s pipeline.”

Carmot Therapeutics Inc. is a biotechnology company that focuses on developing drugs for metabolic diseases such as obesity and diabetes.

According to their website, they use a novel platform called Chemotype Evolution, which allows them to discover and optimize new compounds that target the root causes of these diseases.

They are currently working on several clinical trials for their lead candidates, which are based on the incretin hormone system. Incretins are hormones that stimulate insulin secretion and inhibit glucagon secretion, which help regulate blood sugar levels.

Carmot Therapeutics aims to create life-changing therapeutics that can improve the quality of life for millions of people living with these conditions.

Roche buys Telavant for $7.1 billion, gains access to novel IBD drug