By Joe Hoppe
AstraZeneca PLC said Monday that it has agreed to buy CinCor Pharma, Inc., acquiring global rights to the latter’s baxdrostat cardiorenal drug for an upfront transaction value of around $1.3 billion.
The Anglo-Swedish pharma giant said that it will initiate a tender offer to acquire all of U.S.-listed clinical-stage biopharmaceutical company CinCor’s outstanding shares, for a price of $26 a share in cash at the closing of the deal, along with a non-tradable contingent value right of $10 a share in cash payable upon a specified regulatory submission of a baxdrostat product. The deal is expected to close in the first quarter.
The upfront cash portion of the acquisition represents a 121% premium to CinCor’s closing market price on Jan. 6 of $11.78.
The combined upfront and maximum potential contingent value payments represent a transaction value of around $1.8 billion.
AstraZeneca said the acquisition will bolster its cardiorenal pipeline by adding baxdrostat, an inhibitor for blood pressure lowering in treatment-resistant hypertension.
Write to Joe Hoppe at joseph.hoppe@wsj.com
