Clinical stage biopharmaceutical company 89bio (Nasdaq: ETNB) has announced that it has entered an agreement to be acquired by Roche for an immediate payment of $2.4 billion, and milestone payments, which could bring the deal up to $3.5 billion.
The immediate payment represents a 79.5% premium on the company’s share price on Nasdaq at closing yesterday. This is after the share price has lost 70% of its value since the company’s IPO in November 2019.
Teva misses out
bio89 was founded by former employees of Teva including VP strategy Dr. Ram Waisbourd and CSO Dr. Michael Hayden who sits on the board. The company was founded in Israel but has since moved its headquarters to the US, where it is led by CEO Rohan Palekar, although it mains an R&D center in Israel.
bio89 initially raised $60 million led by OrbiMed Israel with OrbiMed US and Pontifax, and US funds Longitude and RA Capital. These are expected to be the biggest beneficiaries of the deal, which now provides a much-needed boost to venture capital funds operating in the pharma sector in Israel.
89bio was founded on the basis of an asset that was owned by Teva, so this could be seen as a loss for Teva, but in reality the concession was necessary for Teva to focus on its core areas. Teva received $6 million with the company split and is entitled to another $135 million and royalties in the event of success. Teva probably has additional rights in the company.
In 2019, bio89 raised $84.8 million on Nasdaq at a valuation of $193 million after money.
Fatty liver treatment
The company’s product is a drug for fatty liver, a disease that is part of the metabolic syndrome (heart disease, diabetes, and obesity), but can sometimes occur in people who are not obese.
The fatty liver market is one of the largest in the medical field, and the first drug launched in the field last year was not embraced with much enthusiasm by the market. Anti-obesity drugs from the GLP family have been shown to improve the condition of fatty liver, but experts believed that there is a place in the market for a dedicated drug for fatty liver, for those who are not suitable to take these drugs, or in combination with them.
The company’s lead drug is in Phase III clinical trials, so there is still a risk that the drug will not be successful, but the vote of confidence it is receiving from Roche strengthens the assessment that the product can survive the trials.
89bio’s product works on the FGF21 mechanism, which is considered very promising in the field and has anti-inflammatory and anti-scarring effects. This mechanism has other possible applications, and Roche said it plans to combine 89bio’s drug with its other products in the cardio-metabolic field.
89bio is also conducting a trial of its lead product in the treatment of high blood triglycerides, with the trial being in people with very high triglyceride levels, at least 3 times the desired level.
Published by Globes, Israel business news – en.globes.co.il – on September 18, 2025.
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