VRTX - Vertex To Buy Alpine Immune - Why This Deal Feels Slightly 'Vanilla'
2024-04-11 09:40:22 ET
Summary
- Boston-based pharma giant Vertex Pharmaceuticais set to acquire Seattle-based biotech company Alpine Immune Sciences for $4.9 billion in cash.
- The acquisition was unanimously approved by both companies' boards of directors and is expected to close later this quarter.
- The deal is driven by Alpine's lead molecule, povetacicept, which has shown potential in treating IgA nephropathy, a serious kidney disease.
- This is an extremely competitive market opportunity, and Vertex conviction on povetacicept appears to be based on a small data sample.
- The deal may be a little overpriced, and may not be the answer to Vertex issues developing drugs outside its $10bn p.a. Cystic Fibrosis franchise, but only time - and more data - will tell.
Investment Overview
Yesterday, after market close, the Boston based Pharma giant Vertex Pharmaceuticals Incorporated ( VRTX ) broke the news that it would acquire Seattle-based biotech company Alpine Immune Sciences, Inc. ( ALPN ) for $65 per share, or ~$4.9bn in cash. In a press release issued last night, Vertex confirmed that:
Vertex To Buy Alpine Immune - Why This Deal Feels Slightly 'Vanilla'The transaction was unanimously approved by both the Vertex and Alpine Boards of Directors and is anticipated to close later this quarter.