In top news on UK stocks, AstraZeneca PLC (GB:AZN) announced its acquisition of French biotech company Amolyt Pharma for $1.05 billion in cash. Amolyt is a clinical-stage company, developing treatments for rare endocrine and related diseases. The deal agreement comprises an initial payment of $800 million and a contingent payment of $250 million dependent on a specified milestone. The deal is also subject to regulatory approvals and is expected to close by the third quarter of 2024.
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AZN stock is trading down by 0.23% at the time of writing today.
AstraZeneca is a leading global pharmaceutical company, serving billions of people worldwide. The company operates in three main categories: Oncology, Rare Diseases, and BioPharmaceuticals.
Rationale Behind the Deal
With this acquisition, AstraZeneca aims to enhance its subsidiary Alexion Pharmaceuticals’ offerings in the rare diseases segment. Specifically, the addition of Amolyt’s Phase III candidate eneboparatide will boost its bone metabolism portfolio. Eneboparatide is a peptide developed for the treatment of hypoparathyroidism, a condition that disturbs calcium and phosphate levels in the body. Hypoparathyroidism impacts approximately 115,000 individuals in the U.S. and 107,000 in the European Union.
Alexion’s CEO, Marc Dunoyer, highlighted the company’s ability to drive forward further development and commercialization of eneboparatide on a global scale. Additionally, the acquisition is poised to integrate Amolyt’s expertise and early pipeline, potentially extending Alexion’s footprint in the field of rare endocrinology.
In 2023, the company’s rare diseases segment accounted for 17% of its total revenue growth. Throughout the full year, this segment demonstrated a 12% rise in revenues on a constant currency basis, reaching $7.7 billion compared to the previous year.
Is AstraZeneca a Good Buy Now?
On TipRanks, AZN stock received a Moderate Buy consensus rating based on 17 recommendations, including 12 Buys. The AstraZeneca share price forecast stands at 11,140.4p, signifying a potential upside of 7% in the share price.
