Shares of 89Bio, Inc. (ETNB) skyrocketed 85.40% in pre-market trading following the announcement that Swiss pharmaceutical giant Roche Holding Ltd has agreed to acquire the company for up to $3.5 billion. This substantial surge reflects investors' enthusiastic response to the lucrative deal.

Under the terms of the acquisition, Roche will pay $14.50 per share in cash for 89Bio, representing an equity value of approximately $2.4 billion. Additionally, 89Bio stockholders will receive non-tradeable contingent value rights worth up to $6.00 per share in cash, potentially bringing the total transaction value to $3.5 billion or $20.50 per share. This offer represents a significant premium over 89Bio's previous closing price of $8.08.

The acquisition is strategically important for Roche as it strengthens its position in the rapidly growing market for obesity and related metabolic disorders treatments. 89Bio's key asset, pegozafermin, is in late-stage development and is positioned to become a leading treatment for moderate to severe metabolic dysfunction-associated steatohepatitis (MASH), a common complication of obesity. This move aligns with Roche's recent efforts to compete with industry leaders Novo Nordisk and Eli Lilly in the lucrative weight loss drug market. The deal is expected to close in the fourth quarter of 2025, subject to customary closing conditions.