Pharmaceutical company Roivant Sciences Ltd (NASDAQ:ROIV) has garnered interest from major pharmaceutical companies for its treatment of inflammatory bowel disease, estimated to be valued at over $7 billion, as reported by Bloomberg, which cited sources familiar with the matter.
Discussions are underway regarding the potential sale of the treatment or even the entire company, according to the sources.
The drug being tested for ulcerative colitis and Crohn's disease has generated excitement in the field of immunology treatments. The outcome of the deliberations is uncertain, and Roivant may choose to retain the asset known as RVT-3101. Roivant, which saw a share price gain of 110% in the past year, declined to comment.
Roivant is one of several companies involved in the development of an antibody that targets TL1A, a protein believed to play a role in autoimmune disease.
The interest in this drug class has surged since Merck & Company Inc (NYSE:MRK) announced its $10.8 billion acquisition of Prometheus Biosciences primarily for its IBD treatment, which is projected to generate substantial revenue. Pharmaceutical companies are increasingly attracted to treatments for autoimmune and inflammatory diseases due to their wide range of potential applications.
In December, Roivant acquired its anti-TL1A treatment from Pfizer (NYSE:PFE), assuming global development responsibilities for RVT-3101 in ulcerative colitis and other inflammatory diseases. Roivant holds commercial rights to the drug in the U.S. and Japan, while Pfizer, with a 25% stake in the Roivant subsidiary developing the drug, retains commercial rights in other regions, as announced at the time of the deal.
According to an investor presentation in January, Roivant envisions a $15 billion market for inflammatory bowel disease in the U.S. alone. In the U.S., approximately 2M individuals suffer from inflammatory bowel disease, with ulcerative colitis and Crohn's disease being the most prevalent forms.