(Reuters) – Vertex Pharmaceuticals will buy Alpine Immune Sciences (NASDAQ:) for about $4.9 billion in cash, gaining access to the biotech firm’s drugs to treat autoimmune kidney disease, the companies said on Wednesday.
The deal values each Alpine share at $65, representing a premium of about 67% to Tuesday’s closing price, a day before Bloomberg News reported the company was considering its options after attracting takeover interest.
Alpine shares rose 36% in extended trading, while Vertex (NASDAQ:) Pharma shares fell about 1%.
The gene therapy developer will now have access to Alpine’s povetacicept, which is in mid-stage development for the treatment of IgA nephropathy (IgAN) and will be evaluated in a late-stage study in the second half of 2024.
Povetacicept works by targeting types of proteins called BAFF and APRIL, which together contribute to the development of a variety of autoimmune and antibody diseases.
IgAN, which occurs when clumps of antibodies are deposited in the kidneys, affects about 130,000 people in the United States, according to the companies.
Vertex currently has U.S. Food and Drug Administration approval to treat cystic fibrosis, a rare genetic disease primarily affecting the lungs, and two types of blood disorders, sickle cell disease and transfusion-dependent beta thalassemia.
Alpine said in a statement that it could be required to pay Vertex a $173 million termination fee on termination of the deal, which has been approved by the boards of directors of both companies and is expected to close in the second quarter of 2024.