Biotech company Roivant Sciences (NASDAQ:ROIV) is in discussions to sell its experimental drug (RVT-3101) for treating inflammatory bowel diseases, including ulcerative colitis and Crohn’s disease, to Roche (RHHBY) in a deal that could be worth over $7 billion, the Wall Street Journal reported. ROIV shares jumped nearly 12% in Thursday’s after-hours trading in reaction to the news.
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While the Wall Street Journal report indicated the deal could be announced in the coming days, it also added that sources have cautioned that the talks could fail and another buyer could emerge.
About Roivant
Roivant advances its pipeline by forming “nimble subsidiaries” or “Vants” to develop and commercialize its medicines and technologies. The company was founded in 2014 by Republican presidential candidate Vivek Ramaswamy.
Roivant gained RVT-3101 under a deal with pharma giant Pfizer (NYSE:PFE). In late 2022, the two companies announced the formation of a new “Vant” (called Telavant) to develop and commercialize RVT-3101. Pfizer owns a 25% equity position in Telavant and has commercial rights outside of the U.S. and Japan. There is no information on what would happen to Pfizer’s stake if Roivant strikes a deal to sell RVT-3101.
RVT-3101 is currently in Phase 3 testing for the treatment of ulcerative colitis. Last month, the company reported positive results from a Phase 2 study of RVT-3101 in ulcerative colitis. The company has also initiated a Phase 2 study of RVT-3101 in Crohn’s disease, with topline data expected in the fourth quarter of 2024.
What is the Stock Price Forecast for Roivant Sciences?
Wall Street has a Strong Buy consensus rating on Roivant stock based on eight Buys and one Hold. The average price target of $15.50 implies nearly 34% upside potential from current levels.
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