AstraZeneca to acquire CinCor Pharma in deal worth up to $1.8bn
AstraZeneca is to acquire CinCor Pharma in a deal worth up to $1.8bn.
It will give the Cambridge-based biopharmaceutical company access to a pipeline of kidney and heart drugs.
In particular, acquisition of the US-based clinical stage company will give AstraZeneca global rights to baxdrostat (CIN-107), an aldosterone synthase inhibitor (ASI) for lowering blood pressure in treatment-resistant hypertension.
AstraZeneca sees it as potentially the leading next-generation ASI as it is highly selective for aldosterone synthase and spares the cortisol pathway in humans.
Mene Pangalos, executive vice president bioPharmaceuticals R&D, AstraZeneca, said: “Acquiring CinCor supports our commitment to cardiorenal disease and further strengthens our pipeline with baxdrostat. Excess levels of aldosterone are associated with hypertension and several cardiorenal diseases, including chronic kidney disease and coronary artery disease and being able to effectively reduce this would offer a much-needed treatment option for these patients.”
The deal also gives the potential of a combination of baxdrostat with Farxiga, AstraZeneca’s drug for the treatment of chronic kidney disease, heart failure and type II diabetes.
The company said it complements its strategy of providing added benefit across cardiorenal diseases, where there is a high unmet medical need.
Marc de Garidel, CEO CinCor, said: “We are excited about the proposed acquisition of CinCor Pharma by AstraZeneca as we believe it 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 is committed to ensuring a smooth transition of the development responsibilities to AstraZeneca once the acquisition is consummated. Thank you to all who have played, and will continue to play, essential roles in developing and evaluating baxdrostat as a potential novel treatment for cardiorenal diseases.”
Under the terms, AstraZeneca will initiate a tender offer to acquire all of CinCor’s outstanding shares for $26 per share - worth about $1.3bn, and 121 per cent premium on CinCor’s January 6 closing market place. It will also pay a non-tradable contingent value right of $10 per share in cash payable upon a specified regulatory submission of a baxdrostat product.
If that is achieved, the full transaction would be worth $1.8bn. AstraZeneca would acquire the cash and marketable securities on CinCor’s balance sheet, worth approximately $522m on September 30, 2022.
