Street View: Vertex's $4.9 bln Alpine Immune takeover expands its portfolio

Alpine Immune Sciences

11/04/2024 11:39

** Vertex Pharmaceuticals  VRTX.O  will buy drug developer
Alpine Immune Sciences  ALPN.O  for about $4.90 bln in cash
    ** VRTX will gain access to ALPN's gene therapy povetacicept
 for IgA nephropathy (IgAN), an autoimmune disease of kidney 
    ** Povetacicept is also being tested for three other
inflammatory diseases
    ** Shares of ALPN up 36.2% at $64.06, while VRTX down
marginally at $395 premarket
    
    VERTEX TO EXPAND KIDNEY PORTFOLIO
    ** BMO Capital Markets (VRTX: "outperform", PT $480) says
deal is consistent with VRTX's M&A guidance of expansion into
areas where it has expertise, and that it reflects continued
efforts to expand into kidney disease
    ** By taking a mid-stage asset, VRTX has not had to submit a
substantial cost of acquiring an asset in late-stage testing -
BMO
    ** William Blair (VRTX: "outperform") believes povetacicept
is a best-in-class therapy with data showing it can provide
disease-modifying benefit with less frequent dosing
    ** Brokerage also sees povetacicept becoming a
multibillion-dollar product if it has applications beyond IgAN
    ** Jefferies (VRTX: "hold", PT: $440) says the deal will
further strengthen VRTX's existing position in the kidney space,
complementing its other experimental drug
    ** TD Cowen (VRTX: "buy", PT: $450) says the acquisition
makes strategic sense and should begin contributing to VRTX's
revenue growth in 2027.

 (Reporting by Puyaan Singh in Bengaluru)
 ((Puyaan.Singh@thomsonreuters.com))