JPM23: Acquisition Announcements From JP Morgan Healthcare Conference 2023 Day One

With JP Morgan’s 41st annual Healthcare Conference underway, companies worldwide are jumping at the opportunity to announce acquisition plans and updates. Here are four of the biggest acquisition announcements from the first day of the JP Morgan Healthcare Conference 2023, including pharma, development, and manufacturing mergers from the likes of AstraZeneca, Novotech, and more.

AstraZeneca’s CinCor Pharma Acquisition

One of the most significant announcements came from UK-based pharma giant AstraZeneca and its plans to acquire clinical-stage CinCor Pharma and its lead candidate, baxdrostat. The promising aldosterone synthase inhibitor is in several clinical trials studying its safety and efficacy in treating hypertension and primary aldosteronism.

AstraZeneca’s tender offer includes an upfront cash payment worth $1.3 billion and the potential for contingent value payments worth up to $522 million. CinCor could make $1.8 billion in total thanks to the acquisition. The companies expect to finalize the acquisition in the first quarter of this year. 

Ipsen to Acquire Albireo to Grow Rare Disease Division

Another considerable pharma merger announcement came from Ipsen and its plan to acquire Albireo, its approved drug Bylvay, and the other candidates in its pipeline. The FDA approved Bylvay in 2021 to treat pruritus in patients three months of age and older with progressive familial intrahepatic cholestasis. Albireo says Bylvay also has potential in other rare disease areas, including Alagille syndrome and biliary atresia.

Ipsen offered to acquire Albireo for $42 per share, a 104% premium on the company’s share price preceding the transaction announcement. In total, the offer amounts to $952 million plus one contingent value right (CVR) per share. The CVR option will be payable upon Bylvay’s biliary atresia approval by December 2027. Ipsen and Albireo expect the deal to close by the end of 2023’s first quarter. 

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Zeon Scoops Up Edge Precision Manufacturing

In a significant manufacturing acquisition, Japan-based Zeon Corporation announced it acquired Edge Precision Manufacturing to take advantage of its micro-featured thermoplastic device manufacturing capabilities. Zeon plans to use the micro-featured thermoplastic devices in diagnostic, clinical, optics, and research applications.

While the press release did not disclose any financial figures on the acquisition, the companies have a history together with Edge using many Zeon materials in the past. Zeon said the merger would simplify the supply chain and provide access to Edge’s extensive customer network.

Novotech’s EastHORN CRO Acquisition

To expand into the European research market, Novotech acquired long-time contract research organization (CRO) partner, EastHORN. Previously focused on the Asia-Pacific and North American regions, the acquisition would provide Novotech access to EastHORN’s extensive European network, diversifying Novotech’s patient population access for global drug development programs. 

Novotech’s press release did not mention any figures for the acquisition but noted that it would welcome EastHORN’s 250 employees. After winning the 2022 Asia-Pacific Biotech CRO of the Year award by Frost & Sullivan, the EastHORN acquisition is Novotech’s next big step in its burgeoning growth process. 

JP Morgan’s 2023 Healthcare Conference is a weeklong investment symposium bringing the biotech industry together to discuss innovation in the space while giving companies the opportunity to announce important business developments. These are four of the biggest merger and acquisition announcements from day one of the event. With much more to come, stay tuned for the industry’s biggest updates which will set the tone for the rest of 2023. 

Author

Reed Slater