NVS - What Vertex Pharmaceuticals Is Getting With Acquisition Of Alpine Immune Sciences

2024-04-11 15:23:48 ET

Summary

• Vertex Pharmaceuticals is acquiring Alpine Immune Sciences for $4.9 billion, gaining access to povetacicept, a potential treatment for IgA nephropathy and up to seven additional indications.
• Povetacicept has shown promising results in reducing proteinuria in IgAN patients in the phase 1b/2 clinical trial.
• The acquisition also includes Alpine's protein engineering and autoimmune expertise, as well as collaborations with Amgen and AbbVie.
• The deal brings no revenues until at least 2027 and will produce modest upside for Vertex this decade.
• Long-term upside could be significant if povetacicept lives up to its potential in IgAN and other potential indications and if Alpine's platform generates additional products for Vertex.

Vertex Pharmaceuticals ( VRTX ) announced yesterday it will acquire Alpine Immune Sciences ( ALPN ) for $65 per share, which translates to $4.9 billion market value or $4.6 billion net of cash. Vertex is gaining povetacicept, a phase 3-ready clinical candidate for the treatment of IgA nephropathy with pipeline in a drug potential for rare kidney diseases and also in autoimmune cytopenias. Vertex is also getting Alpine’s protein engineering and autoimmune expertise that it claims can be used to develop treatments for diseases Alpine was working on and also for diseases of Vertex’s ongoing and potential interest. And finally, Vertex is also inheriting two big pharma collaborations, but both seem to be going nowhere....

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