89bio, Inc. Announces Agreement to be Acquired by Roche

Core Viewpoint - 89bio, Inc. has entered into a merger agreement with Roche, with stockholders set to receive up to $20.50 per share, including a cash payment of $14.50 at closing and a contingent value right (CVR) of up to $6.00 per share, representing a total equity value of approximately $3.5 billion [1][3][6] Company Overview - 89bio is a clinical-stage biopharmaceutical company focused on developing therapies for liver and cardiometabolic diseases, currently in Phase 3 trials for its lead candidate, pegozafermin, targeting metabolic dysfunction-associated steatohepatitis (MASH) and severe hypertriglyceridemia (SHTG) [9] Transaction Details - The merger agreement includes a tender offer for all outstanding shares at $14.50 per share, totaling an aggregate payment of $2.4 billion, with additional contingent payments based on specific milestones [3][4] - The CVR includes potential cash payments of $2.00 per share upon the first commercial sale of pegozafermin, $1.50 per share upon achieving annual net sales of at least $3.0 billion, and $2.50 per share for annual net sales of at least $4.0 billion [5] Strategic Implications - The merger aims to leverage Roche's global development and commercialization capabilities to enhance the potential benefits of pegozafermin for patients and unlock significant shareholder value [2] - Roche plans to integrate pegozafermin into its cardiovascular, renal, and metabolism portfolio, aiming to transform the standard of care for patients with moderate to severe MASH [2]