Biopharma Giant AstraZeneca to Acquire CinCor in Deal Worth Up to $1.8B
AstraZeneca will buy US biotech CinCor Pharma Inc. for as much as $1.8 billion to gain a new treatment for hypertension and kidney disease.
The biopharmaceuticals giant will pay $26 per share for all outstanding CinCor stock, representing a 121% premium to its closing price as of last Friday. The agreement also includes a non-tradable contingent value right of $10 per share, which is payable upon certain regulatory milestones.
Astrazeneca is committing $1.3 billion in upfront cash payments. If the contingent value right is achieved, the value could jump to approximately $1.8 billion, which is a 206% premium relative to CinCor’s closing price last Friday.
CEO Marc de Garidel said CinCor accepted the offer after a “careful and thorough process” determined it was in the company’s best interest and will maximize the value for shareholders.
AstraZeneca will gain the rights to CinCor’s experimental therapy baxdrostat, which is in development to treat conditions including high blood pressure and chronic kidney disease.
The move reflects the company’s further investment in cardiorenal disease, as baxdrosat also brings some potential to be used in combination with Farxiga, AstraZeneca’s diabetes drug that has shown some promise in treating heart failure and kidney disease.
Top revenue stream for Astrazeneca comes from its cancer drugs, but its heart, kidney and diabetes drugs are a close second, according to the company’s latest earnings report. Those treatments made up $6.9 billion of its total $33 billion revenue in the first three quarters of 2022.