Roche buys biotech company co-founded by IU professor

Although the deal was sealed in late December, the details about leading pharmaceutical company Roche’s purchase of Marcadia Biotech, a small company specializing in treatments for diabetes and obesity, were officially released at Roche’s annual report during the first week of February.

Like IU did several years ago with its financial support, Roche acknowledged the high hopes for success in further research developments for the Carmel-based Marcadia Biotech, which was started by former employees of Eli Lilly and Company in 2005, according to the press release.

Not only does IU receive proceeds when new products from the company hit the market, but it quickly became a key to the deal as well as Marcadia’s success, said Marie Kerbeshian, vice president of the Office of Technology Commercialization at the IU Research & Technology Corporation.

“In the past six years, Marcadia has worked with IU to develop technologies further, bringing the potential far enough for Roche to take over the rest,” Kerbeshian said.

Marcadia was bought for potentially $537 million: $287 million with an additional $250 million if research reaches specific developmental milestones, former Marcadia CEO Fritz French said.

The growth of such a small company would not have been possible without the efforts of Richard DiMarchi, an IU chemistry professor and co-founder of Marcadia Biotech.
DiMarchi’s work contributed to the development of several Lilly drugs, and the ability to work with him is one of the reasons this transaction is so attractive, said Tony Armstrong, president and CEO of IURTC and assistant vice president in the IU Office of the Vice President for Engagement.

“Roche is the world-leading organization in the area, and it will be a tremendous benefit to the University,” he said.

Marcadia’s research deals with crucial issues, such as its efforts in treating diabetes. French said what captivated Roche was the potential to treat type 2 diabetes with a compound that boosts the body to increase insulin production.

“Anyone that stays up in health care knows it’s a growing issue in the world,” Kerbeshian said. “Many products out on the market now cause you to gain weight, but with DiMarchi’s compound you see weight loss, and that’s a wonderful combination in patient perspective.”

With the success the company has already seen, Armstrong said the purchase was the next logical step.

“There is still a long way to go, and Roche will be a big part of that,” he said.