Astra snaps up US Cincor in £1.5bn deal
ASTRAZENECA has today invested $1.8bn (£1.5bn) to buy America’s Cincor in a deal that will boost its portfolio of heart and kidney medicines and drive new research into a vital area.
Amid ongoing concerns in some quarters that the best of British companies will be snapped up by foreign investors, the deal sees the Anglo-Swedish drug giant snap up a US blood pressure pioneer.
Cincor is working on a phase 3 trial for baxdrosate, a new treatment that should lower blood pressure once scientists get it right, so far the evidence has been mixed.
Astra will initially pay $26 per share plus additional payments based on performance.
That’s a big premium to Friday’s closing price of $11.78, a sign of Astra’s willingness to get the deal done.
A major health conference sponsored by JP Morgan opens in San Francisco this week. Drug analysts predict a strong year for acquisitions in the sector, given the increased interest in health care globally.
There has also been a drop in the value of many biotech companies, which could encourage large companies to plummet.
Marc de Garidel, CEO of CinCor, said: “We are excited about AstraZeneca’s proposed acquisition of CinCor Pharma as we believe it offers the opportunity to accelerate the development timeline and expand the breadth of benefits that patients with cardiorenal disease could get from baxdrostat, if approved.”
Mene Pangalos, executive vice president of AstraZeneca BioPharmaceuticals, said: “The acquisition of CinCor supports our commitment to cardiorenal disease and further strengthens our pipeline with baxdrostat.”
Cambridge-based Astra saw its shares fall 118p to 11672p, leaving the business valued at £178bn.
This agreement could allow a combination of baxdrosate with Astra’s drug Farxiga.
Astra says there is a “high unmet medical need” for drugs like aldosterone.
Pangalos added: “Excessive levels of aldosterone are associated with hypertension and various cardiorenal diseases, including chronic kidney disease and coronary artery disease, and being able to effectively reduce this would provide a much-needed treatment option for to these patients.”
The company was a major player in the development of vaccines against Covid.
As part of the deal, Astra acquires cash and other securities from CinCor’s balance sheet worth $522 million.