Vertex Pharmaceuticals has announced plans to acquire Alpine Immune Sciences for approximately $4.9 billion in cash, giving them access to the biotech company’s treatment for an autoimmune kidney disease. The acquisition will value each share of Alpine at $65, representing a 67% premium to the stock’s previous closing price. Following reports of takeover interest, Alpine’s shares rose 36% in extended trading, while Vertex Pharma saw a slight decrease of about 1%.
In this transaction, Vertex will gain access to Alpine’s povetacicept, which is currently in mid-stage development for the treatment of IgA nephropathy (IgAN). This treatment will undergo evaluation in a late-stage trial scheduled for the second half of 2024. Povetacicept targets proteins BAFF and APRIL, which play a role in the development of various autoimmune and antibody-related diseases.
IgAN is a condition where clumps of antibodies build up in the kidneys and affects approximately 130,000 people in the United States. Vertex Pharmaceuticals currently holds FDA approval for the treatment of cystic fibrosis, sickle cell disease, and transfusion-dependent beta thalassemia. With this acquisition, Vertex aims to expand its portfolio and address unmet medical needs related to autoimmune diseases.
The deal has been approved by both companies’ boards and is expected to be finalized in the second quarter of 2024. If necessary, Alpine may be required to pay Vertex a termination fee of $173 million in the event that the deal does not go through as planned.
