Roche licenses Chinese obesity drug in deal worth up to $1.16 billion
Roche will license an experimental obesity drug from China's Rona Therapeutics in a deal worth up to $1.16 billion, Fierce Biotech and the Wall Street Journal reported. The drug targets a protein called ALK7. It aims to cut fat while keeping muscle, Fierce Biotech reported.
Swiss drugmaker Roche struck a deal with China's Rona Therapeutics for worldwide rights to an experimental obesity therapy, in a deal worth up to $1.16 billion, the Wall Street Journal and Fierce Biotech reported.
Shanghai-based Rona will get upfront and near-term payments of up to $100 million, the Wall Street Journal reported. It could get another $1.06 billion if the drug reaches development, regulatory and sales goals, plus royalties on sales.
The drug candidate uses RNA interference to target ALK7, a protein found mostly in fat tissue, Fierce Biotech and BioPharm International reported. In theory, blocking ALK7 could reduce fat while preserving lean muscle, Fierce Biotech reported. That differs from GLP-1 drugs, which mainly act to reduce appetite, BioPharm International reported.
Neither the drug's code name nor its stage of development was disclosed, Fierce Biotech reported. BioPharm International said the licensed drug has not been disclosed as being in human testing, so no human safety or efficacy data exist for it yet.
"ALK7 is a compelling obesity and metabolic disease target with the potential to directly address adipose tissue biology," Rona CEO Stella Shi said, Fierce Biotech reported.
Roche is joining Alnylam, Arrowhead Pharmaceuticals, GSK and Novo in pursuing ALK7, Fierce Biotech reported. Arrowhead reported in January a 14.1% placebo-adjusted drop in visceral fat eight weeks after one dose of its ALK7 drug, the outlet said.
Roche wants to become a "top three" obesity company, Fierce Biotech reported. It entered the field through its $2.7 billion purchase of Carmot Therapeutics and has added deals with Hanmi Pharm and Zealand Pharma. Roche is among drugmakers trying to challenge Eli Lilly and Novo Nordisk in weight-loss drugs, the Wall Street Journal reported.
What we know: Roche licensed Rona's ALK7 obesity candidate for up to $100 million near term and up to $1.16 billion in total.
What we don't: When the drug will be tested in people and whether it works in humans.
Where outlets agree Fierce Biotech and the Wall Street Journal both report up to $100 million upfront and near term and up to $1.06 billion more in milestones.
Where they differ The outlets cited here report the same key facts so far.