Schroders Capital Global Innovation (INOV) has announced that its portfolio company Carmot Therapeutics Inc., a clinical-stage biotechnology company dedicated to developing life-changing therapeutics for people living with metabolic diseases including obesity and diabetes, entered into a definitive agreement to be acquired by Roche, on 3 December 2023. Roche is acquiring Carmot at a purchase price of US$2.7 billion upfront with the potential for US$400 million in milestone payments. The agreement is expected to close in the first quarter of 2024, subject to customary closing conditions and required regulatory approvals. INOV says that full details of its profit on the sale will be released in due course.
Background to INOV’s investment in Carmot Therapeutics
In May 2023, the Company made a US$1.7m investment into Carmot, via Harbour 25, as part of its $150m Series E funding round to support development of Carmot’s broad clinical-stage metabolic pipeline, including two phase 2 trials of CT-388, a once weekly, dual GLP-1/GIP receptor modulator for obese adults with and without type 2 diabetes. Carmot’s Series E round was led by Deep Track Capital and supported by a syndicate of new and existing healthcare investors including 5AM Ventures, Franklin Templeton, Frazier Life Sciences, Janus Henderson Investors, RA Capital Management, Millennium Management, TCGX, The Column Group, Venrock Healthcare Capital Partners and Willett Advisors.
Comments from INOV’s managers
Tim Creed, Lead Portfolio Manager, and Harry Raikes, Co-Portfolio Manager commented: “We chose to invest in Carmot Therapeutics based on its compelling assets, which are backed by robust clinical data. The company operates in the rapidly expanding GLP1 space, which has garnered significant attention worldwide. Overall, the company fulfilled our four key investment criteria: a strong management team, a significant market opportunity, high quality science and reputable co-investors. We are delighted by the news of this sale, which has occurred earlier than expected but reflects the unique nature of Carmot’s pipeline.”