Vertex Pharmaceuticals Incorporated (VRTX) has announced its plans to acquire Alpine Immune Sciences, Inc. (ALPN), a company dedicated to the discovery and development of novel protein-based immunotherapies. The acquisition, valued at approximately $4.9 billion, will see Vertex purchasing Alpine at $65 per share in an all-cash transaction.

The strategic acquisition has received unanimous support from both companies’ Boards of Directors and is expected to be finalized later this quarter. This deal marks a major milestone for Vertex as it aims to expand its portfolio in the specialty markets of serious diseases lacking effective treatments.

Alpine’s flagship molecule, povetacicept (ALPN-303), is a dual antagonist of BAFF and APRIL, showing promising efficacy in Phase 2 trials for IgA nephropathy (IgAN), a chronic autoimmune kidney disease with no current therapies addressing its root cause. With an estimated 130,000 affected individuals in the U.S. alone, povetacicept’s advancement to Phase 3 clinical development in the latter half of 2024 is highly anticipated.

The broader implications of povetacicept’s mechanism could extend its therapeutic benefits to other autoimmune kidney diseases and autoimmune cytopenias, with ongoing clinical studies exploring these possibilities.

Vertex CEO and President, Dr. Reshma Kewalramani, expressed enthusiasm for the acquisition, stating, “Alpine represents a compelling strategic fit that aligns with our mission to harness scientific innovation for creating transformative medicines. We’re eager to integrate Alpine’s team and their expertise to accelerate povetacicept’s journey to patients and to explore its full potential as a ‘pipeline-in-a-product.’”

Dr. Mitchell H. Gold, Alpine’s Executive Chairman and CEO, echoed this sentiment, highlighting the shared values between the two companies and the potential impact of povetacicept on patients worldwide.

The terms of the merger stipulate that a Vertex subsidiary will initiate a cash tender offer to acquire all outstanding Alpine shares. The completion of the transaction is contingent upon several conditions, including the tender of the majority of Alpine’s outstanding shares and regulatory approvals.

Advising on the transaction, Lazard is serving as Vertex’s financial advisor, with Skadden, Arps, Slate, Meagher & Flom providing legal counsel. Alpine has appointed Centerview Partners as its exclusive financial advisor and Fenwick & West LLP for legal guidance. The deal is poised to close in the second quarter of 2024, pending fulfillment of the customary conditions.

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