Roche Holding Ltd (RHHBY.US) will acquire biotech company 89Bio, Inc. (ETNB.US) for up to $3.5 billion, marking the Swiss pharmaceutical giant's latest strategic move into the weight loss drug and related therapy markets.

According to a company statement, San Francisco-based 89Bio, Inc. is developing innovative therapies targeting liver and cardiovascular metabolic diseases. The company's key late-stage development drug is pegozafermin, which is positioned to become a leading treatment for moderate to severe metabolic dysfunction-associated steatohepatitis (MASH). MASH represents one of the most common complications associated with obesity.

MASH develops when fat accumulates in the liver, causing inflammation and potentially leading to more serious conditions including cirrhosis and cancer.

Under the acquisition terms, Roche Holding Ltd will pay $14.50 per share in cash for 89Bio, Inc., representing an equity value of approximately $2.4 billion. Additionally, shareholders will receive non-tradeable contingent value rights worth up to $6.00 per share in cash, bringing the total transaction value to as much as $3.5 billion.

Market data shows 89Bio, Inc.'s most recent closing price was $8.08, with a market capitalization approaching $1.2 billion.

Roche Holding Ltd is working to compete with industry leaders Novo Nordisk (NVO.US) and Eli Lilly (LLY.US), which have developed multi-billion-dollar blockbuster drugs Wegovy and Zepbound, respectively. The company plans to accelerate development of its experimental weight loss medications, which have shown mixed results in smaller-scale trials but are now advancing toward critical final stages of clinical development.

Roche Holding Ltd's recent major transactions have all focused on obesity-related treatments. Earlier this year, the Basel-based company entered into a $5.3 billion collaboration agreement with Zealand Pharma A/S. Previously, the company acquired Carmot Therapeutics Inc. for $3.1 billion in 2023.

To support its expansion into obesity treatment markets, Roche Holding Ltd also recruited Novo Nordisk executive Morten Lammert earlier this year to serve as global head of cardiovascular, renal, and metabolic areas.

The 89Bio, Inc. acquisition is expected to close in the fourth quarter of 2025.