Vertex Pharmaceuticals Acquires Alpine Immune Sciences for $4.9 Billion
April 10, 2024
Vertex Pharmaceuticals is set to acquire Alpine Immune Sciences for $4.9 billion, expanding its portfolio into the promising field of kidney disease with Alpine’s leading drug candidate, povetacicept, to treat IgA nephropathy. The acquisition price of $65 per share is a significant premium over Alpine’s last closing price of $37.57, reflecting the high potential Vertex sees in the experimental drug.
Povetacicept, an antagonist of B cell activating factor (BAFF) and a proliferation-inducing ligand (APRIL), has shown promising results in early trials. Alpine reported a 64.1% reduction in the urine protein to creatinine ratio (UPCR) at 36 weeks in a Phase 1b/2a study, which measures renal function improvement. This drug is heading into Phase 3 trials in the latter half of this year with potential for accelerated approval.
This acquisition is among the first major strategic moves by Vertex CEO Reshma Kewalramani, who took the helm in 2020. Kewalramani, a former nephrologist, is steering Vertex’s expansion from its traditional focus on cystic fibrosis into other areas, including pain management, diabetes, sickle cell disease, and kidney diseases.
The deal broadens Vertex’s therapeutic range and capitalizes on its robust financial position, with over $10 billion in cash reserves as of the end of 2023. Vertex plans to explore multiple indications for povetacicept, enhancing its potential impact in treating autoimmune diseases and mirroring the success stories of blockbuster drugs like AbbVie’s Humira.
Alpine’s strategic pivot from oncology to immunology under CEO Mitchell Gold, following safety issues in earlier programs, culminates in this lucrative buyout, expected to close in the second quarter of this year. Alpine also plans a Phase 2 study for povetacicept in systemic lupus erythematosus later this year, underscoring the drug’s versatile therapeutic potential.
This acquisition sets a precedent in Vertex’s deal-making strategy, emphasizing timely and strategic acquisitions over internal R&D, potentially reshaping the future trajectory of the company’s growth and therapeutic offerings.
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[Source: Endpoints, April 10th, 2024]
