Why AstraZeneca Is Buying CinCor Pharma For $1.8 Billion (AZN) (CINC)

By Annie Baker ● Jan 9, 2023
  •  CinCor Pharma (CINC) announced that it has entered into a definitive agreement with AstraZeneca (AZN) under which AstraZeneca has agreed to acquire CinCor. These are the details.

CinCor Pharma (CINC) announced that it has entered into a definitive agreement with AstraZeneca (AZN) under which AstraZeneca has agreed to acquire CinCor. This deal would bolster AstraZeneca’s portfolio of heart and kidney drugs.

CinCor’s experimental therapy baxdrostat has been a strong selling point for the deal. This therapy is in development for treating a range of conditions such as high blood pressure and chronic kidney disease.

AstraZeneca will likely combine baxdrostat with its own diabetes drug Farxiga. Farxiga’s sales increased by nearly 50% in the first 9 months of 2022 to $3.2 billion.

Deal terms:

Under the terms of the merger agreement, AstraZeneca is obligated to initiate a tender offer by January 23, 2023, to acquire all of CinCor’s outstanding shares for a price of $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 portion of the consideration represents a transaction value of approximately $1.3 billion and a 121% premium over CinCor’s closing market price on January 6, 2023. And the total consideration including the contingent value right, if the milestone is achieved, would be approximately $1.8 billion and a 206% premium over CinCor’s closing market price on January 6, 2023. CinCor’s Board of Directors has unanimously approved the transaction.

KEY QUOTES:

 “We are excited about the proposed acquisition of CinCor Pharma by AstraZeneca as we believe it offers the prospect of accelerating the development timeline and expanding the breadth of benefits patients with cardiorenal diseases might obtain from baxdrostat, if approved. CinCor is committed to ensuring a smooth transition of the development responsibilities to AstraZeneca once the acquisition is consummated. Thank you to all who have played, and will continue to play, essential roles in developing and evaluating baxdrostat as a potential novel treatment for cardiorenal diseases.”

  • Marc de Garidel, Chief Executive Officer at CinCor

“AstraZeneca’s shared commitment to addressing the unmet medical need for patients with hypertension and cardiorenal disease will accelerate CinCor’s mission to develop and deliver life-changing therapies that improve patient care. The CinCor management team has laid very important scientific and clinical groundwork for the baxdrostat program, including the successful Phase 2 BrigHtn trial that was recently published in the New England Journal of Medicine. On behalf of CinCor’s Board of Directors, I would like to recognize and thank the CinCor team, scientific advisors and patients for their dedication and contributions to the advancement of the development of baxdrostat.”

  • James Healy, M.D., Ph.D., Chairman of CinCor’s Board of Directors and Managing Partner at Sofinnova Investments