9th Jan 2023 10:19
(Alliance News) - AstraZeneca PLC unveiled its first acquisition of the year on Monday, forking out just shy of USD2 billion for a buy which could ease pressure on its cardiorenal arm amid an upcoming loss of exclusivity.
The Cambridge-based pharmaceutical firm said it has acquired CinCor Pharma Inc for an upfront cash consideration of around USD1.3 billion, though the fee could rise to USD1.8 billion.
CinCor is a Waltham, Massachusetts-based clinical-stage biopharmaceutical company. Baxdrostat is CinCor's key clinical stage candidate. It is a high blood pressure treatment.
Astra will pay USD1.3 billion upfront, more than twice CinCor's USD515.5 million market capitalisation. The consideration rises to USD1.8 billion if potential contingent value payments are made.
Analysts at Shore Capital Markets commented: "At first glance, we believe this looks like an interesting asset that should fit well within AstraZeneca's existing cardiorenal franchise, which is currently spearheaded by farxiga. Notably, this brings the opportunity for AZN to develop combinations with farxiga."
Cardiorenal refers to heart and kidneys.
Shore believes the deal could help the FTSE 100 listing "navigate" a loss of exclusivity for farxiga, which will occur in 2025 in the US and two years later in Europe.
The exclusivity shields the drug from patent from generic competition. When the exclusivity runs out, drugmakers must release a therapy's formula, allowing generics to be produced.
Though famed for its oncology offering, AstraZeneca has also made notable strides in other fields, Shore added.
"Although a lot of the focus and attention is placed on AZN's Oncology business, it has a rich heritage in cardiovascular and respiratory medicine via its long-standing innovation in the field, including but not limited to Crestor, Brilinta and Symbicort; we view this acquisition a strong commitment to its other franchises outside of Oncology," the broker added.
AstraZeneca shares were 1.1% lower at 11,656.00 pence each in London on Monday morning.
Shore rates Astra at 'buy'.
By Eric Cunha, Alliance News news editor
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