AstraZeneca on Monday said it has agreed to buy CinCor Pharma, maker of clinical-stage blood pressure drug baxdrostat, in a deal valued at $1.8 billion. AstraZeneca stock edged up a fraction on the news while CINC stock rocketed higher.
The $26 per-share deal represents a 121% premium to Friday's closing price of CINC stock, said AstraZeneca.
The upfront cash portion of the deal is valued at $1.3 billion for AstraZeneca stock. Under terms of the agreement, AstraZeneca will also pay $10 per share in cash based on a regulatory submission of baxdrostat, bringing the total value to $1.8 billion.
AstraZeneca will acquire the cash and marketable securities on CinCor's balance sheet, which totaled $522 million as of Sept. 30.
AstraZeneca Stock: Purchase Boosts Drug Pipeline
"Acquiring CinCor supports our commitment to cardiorenal disease and further strengthens our pipeline with baxdrostat," AstraZeneca Executive Vice President Mene Pangalos said in a written statement. "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."
On the stock market today, AstraZeneca stock edged up 0.1% to close at 70.90. Meanwhile, CINC stock soared nearly 144% to close at 28.74.
In the September quarter, cancer and diabetes drugs drove double-digit sales growth and a strong earnings beat for AstraZeneca. Overall, core AstraZeneca earnings grew 55% year over year to $1.67 per share. Total revenue rose 11% to $10.98 billion.
Part of the growth stemmed from the acquisition of Alexion Pharmaceuticals, maker of rare-disease drug Soliris. AstraZeneca bought Alexion for $1.8 billion in 2021.
AstraZeneca stock holds a Relative Strength Rating of 90, according to IBD Stock checkup.
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