AstraZeneca announced on Monday that it has agreed to buy CinCor Pharma Inc, a biopharmaceutical firm based in the United States, for up to $1.8 billion in order to strengthen its pipeline of heart and kidney drugs and expand beyond its core cancer business.
AstraZeneca said it will pay $26 per CinCor share in cash, or $1.3 billion in total, a nearly 121% premium to the stock's Friday closing price.
The offer also includes a non-tradable contingent value right of $10 per share in cash payable upon CinCor's baxdrostat regulatory submission, which is being developed to treat conditions such as high blood pressure and kidney disease.
Astra added that the offer represents a 206% premium to CinCor's Friday closing price.
The London-listed company announced plans to combine CinCor's lead compound baxdrostat with its own Farxiga, which is rapidly expanding in sales beyond its initial use in diabetes following Astra's approval to treat chronic kidney disease.
Farxiga, whose sales increased by nearly 50% to $3.2 billion in the first nine months of last year, will face competition in kidney disease from drugs produced by Boehringer Ingelheim and Eli Lilly's Jardiance.
"We believe (Astra's bid) offers the prospect of accelerating the development timeline and expanding the breadth of benefits patients with cardiorenal diseases might obtain from baxdrostat, if approved," CinCor's Chief Executive Marc de Garidel said.
Baxdrostat failed to meet its primary goal in a mid-stage study in November because it could not be clearly demonstrated to reduce uncontrolled high blood pressure, but CinCor said it would begin a larger Phase III trial in the first half of this year.
CinCor shares fell more than 50% on the news at the time. The shares of the American company closed at $11.78 on Friday, more than a quarter lower than CinCor's initial public offering price of $16 per share in January 2022.
(Source:www.investing.com)
AstraZeneca said it will pay $26 per CinCor share in cash, or $1.3 billion in total, a nearly 121% premium to the stock's Friday closing price.
The offer also includes a non-tradable contingent value right of $10 per share in cash payable upon CinCor's baxdrostat regulatory submission, which is being developed to treat conditions such as high blood pressure and kidney disease.
Astra added that the offer represents a 206% premium to CinCor's Friday closing price.
The London-listed company announced plans to combine CinCor's lead compound baxdrostat with its own Farxiga, which is rapidly expanding in sales beyond its initial use in diabetes following Astra's approval to treat chronic kidney disease.
Farxiga, whose sales increased by nearly 50% to $3.2 billion in the first nine months of last year, will face competition in kidney disease from drugs produced by Boehringer Ingelheim and Eli Lilly's Jardiance.
"We believe (Astra's bid) offers the prospect of accelerating the development timeline and expanding the breadth of benefits patients with cardiorenal diseases might obtain from baxdrostat, if approved," CinCor's Chief Executive Marc de Garidel said.
Baxdrostat failed to meet its primary goal in a mid-stage study in November because it could not be clearly demonstrated to reduce uncontrolled high blood pressure, but CinCor said it would begin a larger Phase III trial in the first half of this year.
CinCor shares fell more than 50% on the news at the time. The shares of the American company closed at $11.78 on Friday, more than a quarter lower than CinCor's initial public offering price of $16 per share in January 2022.
(Source:www.investing.com)
