Roche signs drug-discovery pact with Atavistik Bio worth up to $2bn

Roche (RHHBY) has agreed a deal with Atavistik Bio worth almost $2bn, including milestone payments, to develop oral treatments for cardiovascular, kidney and metabolic diseases.

The privately held US drug developer will receive $70mn upfront and could earn up to $1.9bn in research, development and commercial milestones, as well as royalties on sales of any approved medicines.

The collaboration spans multiple drug targets and draws on Atavistik's proprietary technology, which identifies hidden pockets on disease-causing proteins. The approach could allow drugs to be developed against targets that conventional methods have struggled to reach, and with fewer unintended effects.

Roche's drug-research unit said Atavistik's ability to work on complex targets made its technology a good fit. It added that potential treatments emerging from the partnership could be used alone or alongside existing therapies to improve patient outcomes.

Atavistik will lead early discovery and research, while Roche will handle further laboratory and human testing, regulatory filings and commercialization.

Atavistik will continue to develop its own treatments for rare blood disorders, including hereditary hemorrhagic telangiectasia, a condition that causes malformed blood vessels.

The companies did not disclose how many targets the partnership covers, nor did they provide development timelines.