AstraZeneca to acquire US biopharma company CinCor Pharma for $1.8bn
AstraZeneca has agreed to acquire CinCor Pharma for a transaction value of around $1.8 billion, which includes an upfront cash payment of about $1.3 billion, plus potential contingent payment on regulatory submission of the latter’s baxdrostat product.
Under the merger agreement, the British-Swedish biotechnology company will initiate a tender offer by 23 January 2023 to acquire all of CinCor Pharma’s outstanding shares.
Founded in 2018, CinCor Pharma is a US-based clinical-stage biopharmaceutical company that develops treatments for resistant and uncontrolled hypertension as well as kidney disease.
Through the proposed acquisition, AstraZeneca anticipates adding baxdrostat (CIN-107) to its cardiorenal pipeline for the potential combination with its kidney disease drug Farxiga.
Baxdrostat is an aldosterone synthase inhibitor in clinical development for the treatment of hypertension and primary aldosteronism while AstraZeneca-developed Farxiga is a first-in-class, oral, once-daily sodium glucose co-transporter 2 inhibitor for preventing and delaying cardiorenal disease.
AstraZeneca to acquire CinCor Pharma. Photo courtesy of AstraZeneca.
Mene Pangalos — AstraZeneca BioPharmaceuticals R&D Executive Vice President, 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.”
Post-closing, CinCor Pharma will hold the exclusive, worldwide licence to baxdrostat.
AstraZeneca will merge its acquisition subsidiary with and into CinCor Pharma on the successful completion of the tender offer.
Marc de Garidel — CinCor Pharma CEO 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.”
AstraZeneca will acquire the cash and other securities on CinCor Pharma’s balance sheet, which amounts to around $522 million as part of the transaction.
Likely to complete in Q1 2023, the acquisition is subject to the satisfaction of the conditions in the merger agreement.