CinCor stock soars 150% as AstraZeneca set to acquire it in up to $1.8B deal
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AstraZeneca (NASDAQ:AZN) is acquiring Waltham, Ma.-based high blood pressure and kidney disease drug developer CinCor Pharma (NASDAQ:CINC) in a deal value of up to $1.8B.
The British pharma giant said that the acquisition will bolster its cardiorenal pipeline by adding CinCor's drug baxdrostat (CIN-107) for blood pressure lowering in treatment-resistant hypertension.
Under the agreement, AstraZeneca will start a tender offer to acquire all of CinCor's outstanding shares for $26 per share in cash at closing, plus a non-tradable contingent value right of $10 per share in cash payable upon a specified regulatory submission of a baxdrostat product.
The upfront cash part of the consideration represents a transaction value of approximately $1.3B. Combined, the upfront and maximum potential contingent value payments represent, if achieved, a transaction value of $1.8B.
AstraZeneca added that it will acquire the cash and marketable securities on CinCor's balance sheet, which totaled ~$522M as of Sept. 30, 2022.
AstraZeneca said baxdrostat represents a potentially leading next-generation aldosterone synthase inhibitor (ASI).
"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," said Mene Pangalos, executive vice president BioPharmaceuticals R&D, AstraZeneca.
CinCor said stockholders holding about 44.8% of CinCor common stock have entered into an agreement with AstraZeneca to tender 100% of their shares in the tender offer.
The acquisition is expected to close in the Q1 2023, subject to conditions, including U.S. antitrust clearance, and tender of shares of CinCor representing at least a majority of the total number of outstanding shares.
CINC +150% to $29.45 premarket Jan. 9
AZN +0.37% to $71.06 premarket