ZURICH, Oct 23, 2023 (BSS/AFP) - 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.

Under the deal, Roche will pay a purchase price of $7.1 billion upfront and a near-term milestone payment of $150 million.

Roche said the antibody also has "potential to be applied in multiple other diseases" and it wants to make it available to patients "as quickly as possible".

"We strongly believe this novel TL1A directed antibody has the transformational potential to make a significant difference for patients living with inflammatory bowel disease and potentially other diseases," said Thomas Schinecker, CEO of Roche. 

Telavant was created last year by Roivant -- which holds 75 percent of the shares -- and Pfizer, which owns 25 percent.