AstraZeneca (NYSE:AZN) announced that it entered into a definitive agreement to acquire Alexion Pharmaceuticals (NSDQ:ALXN), expanding its presence in the rare-disease and immunology drugs space.
The acquisition price for Boston-based Alexion is set to total approximately $39 billion, or $175 per share, according to a news release.
The boards of both companies unanimously approved the acquisition and, subject to regulatory clearances and shareholder approval, the companies expect the acquisition to close in the third quarter of 2021. Upon completion, Alexion shareholders will own about 15% of the combined company.
“Alexion has established itself as a leader in complement biology, bringing life-changing benefits to patients with rare diseases,” AstraZeneca CEO Pascal Soriot said in the release. “This acquisition allows us to enhance our presence in immunology. We look forward to welcoming our new colleagues at Alexion so that we can together build on our combined expertise in immunology and precision medicines to drive innovation that delivers life-changing medicines for more patients.”
AstraZeneca’s rationale behind the acquisition centers around working with Alexion’s R&D team to build on the latter’s pipeline of molecules across indications in rare diseases and beyond as the former makes a play into the immunology space.
The London-based drugmaker plans to establish Alexion’s Boston home as its headquarters for rare diseases, capitalizing on the region’s talent, according to the release.
Additionally, the combination of the two companies is expected to deliver double-digit average annual revenue growth through 2025.
“For nearly 30 years Alexion has worked to develop and deliver transformative medicines to patients around the world with rare and devastating diseases,” Alexion CEO Ludwig Hantson said. “I am incredibly proud of what our organisation has accomplished and am grateful to our employees for their contributions. This transaction marks the start of an exciting new chapter for Alexion. We bring to AstraZeneca a strong portfolio, innovative rare disease pipeline, a talented global workforce and strong manufacturing capabilities in biologics.
“We remain committed to continuing to serve the patients who rely on our medicines and firmly believe the combined organisation will be well positioned to accelerate innovation and deliver enhanced value for our shareholders, patients and the rare disease communities.”
Shares of AZN closed the day down -7.8% at $50.03 per share, but shares of ALXN shot up 29.2% at $156.31 per share at market close today.
Tell Us What You Think!