(Reuters) -Biotech company Roivant Sciences is in talks to sell an experimental drug to treat inflammatory bowel diseases, including ulcerative colitis and Crohn’s disease, to Roche in a deal that could be valued at more than $7 billion, the Wall Street Journal reported on Thursday.
The sale of the drug could be announced in the coming days, the report said citing people familiar with the matter. The talks could still fall apart and another suitor could swoop in, it added.
Shares of Roivant rose 12.8% in extended trade.
Roivant’s experimental drug, RVT-3101, is under clinical trials for the treatment of moderate-to-severe ulcerative colitis, a long-term condition where the colon and rectum become inflamed, as well as a type of inflammatory bowel disease known as Crohn’s disease.
RVT-3101 showed improvement in inflammation and ulcers in the colon when compared to a placebo in a mid-stage study in June.
Roivant and Roche declined to comment on the matter.
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(Reporting by Shivani Tanna and Sriparna Roy in Bengaluru; Editing by Shailesh Kuber and Krishna Chandra Eluri)