AstraZeneca to acquire Icosavax in $1.1bn deal to boost vaccine development

In a definitive move, AstraZeneca has entered into an agreement to acquire Icosavax, Inc., a U.S.-based biopharmaceutical company specializing in innovative vaccines. This acquisition, valued at approximately $1.1 billion, signifies a major advancement in respiratory vaccine research, focusing on a novel protein virus-like particle (VLP) platform.

The acquisition will significantly enhance AstraZeneca’s expertise in respiratory syncytial virus (RSV) and human metapneumovirus (hMPV), strengthening its Vaccines & Immune Therapies late-stage pipeline. Icosavax’s lead investigational vaccine candidate, IVX-A12, a Phase III-ready combination protein VLP vaccine, shows immense potential in targeting both RSV and hMPV.

Icosavax’s IVX-A12: A Potential Game-Changer in Vaccine Development

IVX-A12 stands as the most advanced investigational vaccine targeting both RSV and hMPV, with a differentiated profile compared to currently approved RSV vaccines. Phase II data demonstrate that IVX-A12 elicits robust immune responses, reaffirming the promising results of the Phase I trial.

VLP vaccines, such as those developed by Icosavax, mimic naturally occurring viruses to the immune system. They may offer significant advantages over non-VLP vaccines, including stronger immune responses, broader protection, and fewer required boosters. Moreover, compared to current adjuvanted RSV vaccines, they may have a lower incidence of side effects.

AstraZeneca to Expands Portfolio with Strategic Acquisition of Icosavax for $1.1 Billion

AstraZeneca and Icosavax: Uniting Expertise for Advanced Vaccine Development

The acquisition will integrate Icosavax’s proprietary technology and expertise in protein design, enhancing AstraZeneca’s ability to develop differentiated VLP vaccines for high-burden respiratory infections. Iskra Reic, Executive Vice President of Vaccines & Immune Therapies at AstraZeneca, emphasized the potential of this virus-like particle vaccine technology to transform prevention against severe infectious diseases.

Adam Simpson, Chief Executive Officer of Icosavax, expressed enthusiasm about the acquisition, believing it will accelerate and expand access to their combination vaccine for older adults at risk of RSV and hMPV.

Financial Considerations of the Acquisition

Under the terms of the agreement, AstraZeneca will acquire all outstanding shares of Icosavax for $15 per share in cash at closing, plus a non-tradable contingent value right for up to $5 per share, contingent upon achieving specific regulatory and sales milestones. The upfront cash portion of the consideration represents a transaction value of approximately $0.8 billion, reflecting a significant premium to Icosavax’s market value prior to the announcement.

About Icosavax

Founded in 2017, Icosavax leverages its innovative VLP platform technology to develop vaccines against infectious diseases. The company’s focus is on life-threatening respiratory diseases, with the vision of creating combination and pan-respiratory vaccines. Based in Seattle, Icosavax’s technology originated from the Institute for Protein Design at the University of Washington.