AstraZeneca to buy US-based CinCor in $1.8bn deal

AstraZeneca said on Monday that it has agreed to buy US-based clinical-stage biopharmaceutical company CinCor in a $1.8bn deal.

CinCor is focused on developing novel treatments for resistant and uncontrolled hypertension as well as chronic kidney disease.

AstraZeneca said the deal will bolster its cardiorenal pipeline by adding CinCor's candidate drug, baxdrostat (CIN-107), an aldosterone synthase inhibitor (ASI) for blood pressure lowering in treatment-resistant hypertension.

It said Baxdrostat represents a potentially leading next-generation ASI as it is highly selective for aldosterone synthase and spares the cortisol pathway in humans. It also brings the potential for combination with Farxiga and "complements AstraZeneca's strategy to provide added benefit across cardiorenal diseases, where there is a high unmet medical need".

Mene Pangalos, executive vice president of biopharmaceuticals R&D at AstraZeneca, said: "Acquiring CinCor supports our commitment to cardiorenal disease and further strengthens our pipeline with baxdrostat.

"Excess levels of aldosterone are associated with hypertension and several cardiorenal diseases, including chronic kidney disease and coronary artery disease and being able to effectively reduce this would offer a much-needed treatment option for these patients."

Victoria Scholar, head of investment at Interactive Investor, said: "The deal represents a 121% premium to CinCor’s share price at the close on Friday. Shares in CinCor fell sharply in November and are down over 40% over the last six months after one of its blood pressure drugs failed a phase 2 trial.

"There is growing optimism towards pharma deal-making this year after biotech companies suffered sharp valuation slides last year, prompting the opportunity for potential buyers to pounce on M&A targets with discounted price tags. Plus, with the IMF forecasting a third of the global economy will be in a recession in 2023, investors are more risk averse, looking towards defensive sectors such as pharmaceuticals to weather the downturn. Shares in AstraZeneca are trading modestly lower but are still up 40% over a one-year period."