Roche Acquires 89bio, Boosting MASH Drug Development Space

Roche has agreed to acquire 89bio, a leading developer of drugs for metabolic dysfunction-associated steatohepatitis (MASH), in a deal that boosts the MASH space. Shares of other MASH-focused companies traded higher following the announcement. The acquisition highlights the growing interest in treating liver conditions and the potential for new treatments in the MASH space.

Roche (OTCQX:RHHBY) (OTCQX:RHHBF) has agreed to acquire 89bio (NASDAQ:ETNB), a leading developer of drugs for metabolic dysfunction-associated steatohepatitis (MASH), in a deal worth up to $3.5 billion. The acquisition, announced on September 12, 2025, is expected to close in the fourth quarter of 2025 and will see 89bio's employees join Roche's Pharmaceuticals Division Roche deal to buy 89bio boosts MASH space^[1].

89bio's flagship drug, pegozafermin, is a glycoPEGylated analog of fibroblast growth factor 21 (FGF21) in Phase III clinical trials for MASH. Pegozafermin's combined anti-fibrotic and anti-inflammatory mechanism offers a potential best-in-disease treatment for moderate to severe MASH patients Roche pays $3.5bn for 89bio and its potential best-in-disease treatment MASH drug^[2]. The deal underscores Roche's commitment to expanding its portfolio in cardiovascular, renal, and metabolic diseases Roche becomes MASH player via $3.5B deal for 89bio and its phase 3 drug^[3].

The announcement has driven up shares of companies focused on MASH, including Madrigal Pharma (MDGL) and Novo Nordisk (NVO). Madrigal Pharma, which has an FDA-approved MASH therapy on the market, saw its shares rise by ~3%, while Novo Nordisk, whose obesity therapy Wegovy was recently approved for MASH, spiked after a real-world study indicated that its diabetes drug Ozempic outperformed Eli Lilly’s (LLY) Trulicity in reducing major cardiovascular events among Medicare patients Roche deal to buy 89bio boosts MASH space^[1]. Other notable gainers include Altimmune (ALT), Sagimet Biosciences (NASDAQ:SGMT), Akero Therapeutics (AKRO), Arrowhead Pharmaceuticals (ARWR), Terns Pharmaceuticals (TERN), and Enanta Pharmaceuticals (ENTA) Roche deal to buy 89bio boosts MASH space^[1].

The acquisition is the second major biotech deal for September, following Novartis' (NVS) recent agreement to acquire heart drug developer Tourmaline Bio (TRML) for $1.4 billion Roche deal to buy 89bio boosts MASH space^[1]. The deal also extends the three-month rise of the SPDR S&P Biotech ETF (XBI) to ~16%, compared to the ~10% jump in the S&P 500 (SP500) Roche deal to buy 89bio boosts MASH space^[1].

MASH, formerly known as nonalcoholic fatty liver disease (NAFLD), affects an estimated five to seven percent of adults, with more than 75 percent of those living with the condition experiencing comorbidities such as overweight, obesity, and type 2 diabetes Roche pays $3.5bn for 89bio and its potential best-in-disease treatment MASH drug^[2]. The growing prevalence of MASH has sparked significant interest in developing effective treatments, with several companies and drugs vying for a share of the market.

The acquisition of 89bio by Roche highlights the potential for new treatments in the MASH space and underscores the growing interest in addressing liver conditions. The deal is expected to strengthen Roche's portfolio and offer opportunities for combination therapies with existing programs in its pipeline Roche becomes MASH player via $3.5B deal for 89bio and its phase 3 drug^[3].