ZURICHFRANKFURT, Oct 23 Reuters Roche on Monday said it will buy Telavant, a developer of a new treatment for inflammatory bowel diseases, for an initial 7.1 billion from U.S biotech firm Roivant Holdings and Pfizer Inc.

Under the deal, which continues Roche39;s drive to diversify away from its aging cancer treatment business, the Swiss drugmaker will gain the right to develop, manufacture and commercialise an experimental drug known as RVT3101, in the U.S. and Japan.

New Roche CEO Thomas Schinecker is keen to restore Roche39;s battered drug development record after major latestage trial setbacks in the areas of Alzheimer39;s and cancer immunotherapy last year.

The longrumoured deal marks hits first big acquisition since he took charge in March. Schinecker had said Roche was open to big deals if they made scientific and financial sense.

The acquired drug, against inflammatory bowel disease such as ulcerative colitis and Crohn39;s disease, belongs to a class of new treatments known as antiTL1A antibodies which has attracted major deal activity in the pharma industry.

Earlier this month, Sanofi purchased rights to an antiTL1A antibody by Teva for 500 million upfront and up to 1 billion in milestone payments, contingent on development achievements.

Merck Co in April agreed to buy antiTL1A antibody developer Prometheus Biosciences for 10.8 billion.

Inflammatory bowel disease is a group of chronic gastrointestinal disorders with almost 8 million people diagnosed…