Swiss pharma giant Roche on Monday said it would buy Telavant, an immunology company developing a promising treatment for inflammatory bowel disease, in a deal worth more than $7 billion, as the company tries to bolster its drug pipeline following a string of bruising late-stage failures last year. The deal is worth up to $7.25 billion, Roche said, with an upfront payment of $7.1 billion and up to $150 million in a near-term milestone payment. It will give Roche the rights to develop, manufacture and commercialize Telavant’s experimental antibody therapy,...

Swiss pharmaceutical group Roche said Monday it will pay $7.1 billion to buy Telavant Holdings, a group developing new treatments for inflammatory bowel diseases. The company is currently owned by British laboratory Roivant and American pharma giant Pfizer. The agreement includes the "development, manufacturing and commercialisation rights in the US and Japan" for the antibody RVT-3101, used for treating people suffering with inflammatory bowel disease ulcerative colitis and Crohn's disease. The antibody is currently undergoing clinical trials.

A photo showing the logo of Swiss pharmaceutical giant Roche in Basel.

Swiss health care company Roche announced it would acquire Telavant Holdings Monday, in a deal worth $7.1 billion.

Telavant creates drugs for people suffering from inflammatory and fibrotic diseases, and is in the process of developing a "promising new therapy" for patients with Crohn's disease, Roche said in a press release.

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Roche Holding has agreed to buy Telavant Holdings from Roivant Sciences and Pfizer in a deal worth up to $7.25 billion that will give it rights to a therapy for inflammatory bowel disease and potentially multiple other indications. The Swiss pharmaceutical giant said Monday that it will pay $7.1 billion upfront and make a near-term milestone payment of $150 million to acquire rights to develop and manufacture Telavant's RVT-3101 drug candidate and commercialize it in the U.S. and in Japan. Telavant was jointly formed by Roivant and Pfizer last year...