Swiss pharmaceutical giant Roche (RHHBY) has agreed to acquire U.S. biotech company 89bio (ETNB) for a price of up to $3.5 billion, including contingent payments. ETNB stock jumped 83% in Thursday’s pre-market trading in reaction to the news. The acquisition is expected to enhance Roche’s portfolio of treatments for liver and cardiometabolic diseases.
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Roche continues to make strategic acquisitions to enhance its portfolio. Earlier this year, the company acquired rights to an obesity therapy developed by Denmark’s Zealand Pharma (ZLDPF).
Insights from Roche’s Acquisition of 89bio
Roche is acquiring 89bio stock for $14.50 per share in cash, representing a premium of about 79% to the latter’s closing stock price on September 17, 2025, which brings the aggregate payment to $2.4 billion.
The deal also involves a non-tradable contingent value right (CVR) to receive payments of up to $6.00 per share upon achievement of specified milestones. Consequently, this brings the transaction’s total equity value up to $3.5 billion.
Notably, 89bio’s leading drug, pegozafermin, a part of a class known as FGF21 analogues, is in the late stages of development to treat metabolic dysfunction-associated steatohepatitis (MASH), also known as fatty liver, including advanced stages. The deal’s first milestone involves a payment of $2.00 per share upon the first commercial sale of pegozafermin in F4 MASH cirrhotic patients by March 31, 2030.
Meanwhile, the deal has been approved by 89bio’s board of directors. The acquisition is expected to be completed in the fourth quarter of 2025.
Wall Street’s Ratings on Roche and 89bio
Using TipRanks’ Stock Comparison Tool, let’s look at the ratings of the two stocks.
Currently, Wall Street has a Strong Buy consensus rating on 89bio stock, with the average ETNB price target of $27 indicating 234.16% upside potential.
In comparison, Roche has a Moderate Sell consensus rating, with the average RHHBY stock price target of $42.33 indicating a 2.8% upside potential.
