Market Trend

The Legal Logic Behind Big Pharma's MASH Buying Spree

Dieu Anh Nguyen
#biopharma#law#strategy

Big Pharma’s race into the MASH market.

MASH stands for “metabolic dysfunction-associated steatohepatitis”, a disease characterised by the buildup of fat deposits in the liver, causing inflammation 1. Globally, 38% of adults suffered from MASH between 2016 and 2019 2. This number is projected to reach over 55% in 2040, making MASH a substantial market.

Historically, MASH was a risky therapeutic area with a high R&D failure rate. For years, MASH patients were offered nothing other than diet and exercise advice 3. March 2024 marked a key milestone for the disease area with the first-ever approval of a MASH medication, Rezdiffra, produced by Madrigal Pharmaceuticals 4. Rezdiffra is a daily oral pill, indicated for MASH with moderate to advanced fibrosis. The monopoly didn’t last long. In August 2025, Novo Nordisk’s Wegovy was approved for the same indication 5.

Nevertheless, there are still substantial gaps in the market to be addressed. These include medications for more severe MASH stages, with improved tolerability/efficacy, and with additional cardiometabolic benefits (due to the substantial overlap with other metabolic diseases) 3, 6.

Prompted by these initial approvals, Big Pharmas have been racing to enter the MASH market through major acquisitions. Some examples include GSK’s US$2B acquisition of Boston Pharmaceuticals (July 2025), Roche’s US$3.5B acquisition of 89bio (Sep 2025), and Novo Nordisk’s $5.2B acquisition of Akero Therapeutics (Dec 2025) 3.

The combi-drug motive.

All of these acquisitions were made to acquire a MASH asset that could be used in combination with Big Pharma’s own drug – this is the combination therapy strategy, where two or more different medications are used together in a single treatment regimen 3. This could improve patient outcomes when the two drugs work synergistically 7.

GSK’s acquisition gives it access to Boston Pharmaceuticals’ efimosfermin, currently in phase III clinical trials for MASH 8. The company plans to run trials combining this drug with its own GSK’990, which uses another mode of action to target MASH 9.

Similarly, Roche’s acquisition gives it access to 89bio’s pegozafermin, also in phase III trial for MASH, which could be combined with Roche’s existing incretin-based assets 10.

Despite having huge potential, combination therapies are often difficult to design due to the cross-company dynamics and legal implications involved, along with technical challenges 11.

In theory, a company is allowed to conduct clinical trials to test a combined therapy in which one drug is a patented drug from another company. This is due to a provision known as ‘research exemption’, which exists in the UK, US, and EU 12.

However, the company will need permission from the patent holder to market the new drug combination. Any commercial activities involving the branded drug without a license will be infringing patent laws. Moreover, the large supply of drugs needed for the trial necessitates collaboration with the manufacturer. Thus, in practice, companies often form some kind of partnership/agreement to co-develop a combination therapy.

For instance, in 2021, Gilead and MSD entered a collaboration to test a combined therapy involving Gilead’s Trodelvy and MSD’s Keytruda for triple-negative breast cancer 13. As part of the agreement, Gilead will sponsor a phase III global clinical trial for the combination, while MSD agreed to supply Keytruda for the trial. The trial was a success, demonstrating significant improvement in patient survival compared to standard treatment 14.

In another case, in 2017, AstraZeneca and MSD entered a strategic collaboration to co-develop and co-commercialise AstraZeneca’s Lynparza for various cancers 15. The two companies would jointly develop and commercialise Lynparza as both a monotherapy and in combination with other medicines, including MSD’s Keytruda.

If successful, the partners will likely agree on a profit-sharing structure for selling the combined therapy.

Acquisition of MASH biotech – a strategic decision.

Most combination therapy agreements are between large and established pharmaceutical companies. In the cases of MASH, rather than entering a collaborative agreement, large pharmaceuticals straight up purchase the company with the MASH asset it wants to use.

This makes strategic sense. When a drug belongs to a large pharmaceutical company, a straight-up purchase of the company is expensive and unnecessary. The cost of profit-sharing through a collaborative agreement is more justifiable. In the case of MASH, where a smaller biotech company owns the drug, it is easier to acquire the partner than to draw up a collaborative agreement.

Thus, the recent wave of Big Pharma’s bet on MASH medication was an interesting case study, showing how patent protection laws could have implications for a company’s strategic partnership decision.

References
  1. Lucaciu RL, Coste SC, Hangan AC, et al. Pathogenesis and Clinical Management of Metabolic Dysfunction-Associated Steatotic Liver Disease. International Journal of Molecular Sciences. 2025;26(12):5717.
  2. Younossi ZM, Kalligeros M, Henry L. Epidemiology of metabolic dysfunction-associated steatotic liver disease. Clinical and Molecular Hepatology. 2024;31.
  3. Ellison A. Big Pharma bets big on MASH with a new combo playbook. Fierce Pharma. Published 2025. Accessed March 6, 2026. https://www.fiercepharma.com/pharma/big-pharma-bets-big-mash
  4. Food and Drug Administration. FDA Approves First Treatment for Patients with Liver Scarring Due to Fatty Liver Disease. Published 2024. Accessed March 7, 2026. https://www.fda.gov/news-events/press-announcements/fda-approves-first-treatment-patients-liver-scarring-due-fatty-liver-disease
  5. Food and Drug Administration. FDA Approves Treatment for Serious Liver Disease Known as ‘MASH’. Published 2025. Accessed March 7, 2026. https://www.fda.gov/drugs/news-events-human-drugs/fda-approves-treatment-serious-liver-disease-known-mash
  6. IQVIA. The first anniversary of the MASH “market”: looking back and ahead. Published 2025. Accessed March 6, 2026. https://www.iqvia.com/locations/emea/blogs/2025/02/the-mash-markets-first-anniversary-looking-back-and-ahead
  7. The Association of the British Pharmaceutical Industry. Patient access to combination therapies. Published 2024. Accessed March 6, 2026. https://www.abpi.org.uk/value-and-access/patient-access-to-combination-therapies/
  8. ClinicalTrials.gov. A Pivotal Clinical Study to Investigate Efimosfermin Alfa in Participants With Biopsy-confirmed F2- or F3-stage MASH (ZENITH-1). Published 2025. Accessed March 6, 2026. https://clinicaltrials.gov/study/NCT07221227
  9. GSK. GSK completes acquisition of efimosfermin, a potential best-in-class specialty medicine to treat and prevent progression of steatotic liver disease (SLD). Published 2025. Accessed March 6, 2026. https://www.gsk.com/en-gb/media/press-releases/gsk-completes-acquisition-of-efimosfermin/
  10. Roche. Roche enters into a definitive merger agreement to acquire 89bio, and its phase 3 FGF21 analog for the therapy of moderate to severe MASH. Published 2025. Accessed March 6, 2026. https://www.roche.com/media/releases/med-cor-2025-09-18
  11. Lopez JS, Banerji U. Combine and conquer: challenges for targeted therapy combinations in early phase trials. Nature Review Clinical Oncology. 2018;14(1):57-66.
  12. Stief M. The European Research and Bolar Exemptions ‒ Background, Status Quo and a Look at the Agreement on a Unified Patent Court (UPCA) and the EU Commission’s New Draft Directive for the Reform of Pharmaceutical Legislation. GRUR International. 2024;73(9):824-837.
  13. Gilead Sciences. Gilead Announces Clinical Trial Collaboration With Merck to Evaluate Trodelvy® (sacituzumab govitecan-hziy) in Combination With KEYTRUDA® (pembrolizumab) in Patients With First-Line Metastatic Triple-Negative Breast Cancer. Published 2021. Accessed March 6, 2026. https://www.gilead.com/news/news-details/2021/gilead-announces-clinical-trial-collaboration-with-merck-to-evaluate-trodelvy-sacituzumab-govitecan-hziy-in-combination-with-keytruda-pembrolizumab-in-patients-with-first-line-metastatic-tri
  14. Gilead Sciences. Trodelvy® Plus Keytruda® Demonstrates a Statistically Significant and Clinically Meaningful Improvement in Progression Free Survival in Patients With Previously Untreated PD-L1+ Metastatic Triple-Negative Breast Cancer. Published 2025. Accessed March 6, 2026. https://www.gilead.com/news/news-details/2025/trodelvy-plus-keytruda-demonstrates-a-statistically-significant-and-clinically-meaningful-improvement-in-progression-free-survival-in-patients-with-previously-untreated-pd-l1-metastatic-trip
  15. AstraZeneca. AstraZeneca and Merck establish strategic oncology collaboration. Published 2017. Accessed March 6, 2026. https://www.astrazeneca.com/media-centre/press-releases/2017/astrazeneca-and-merck-establish-strategic-oncology-collaboration-27072017.html
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