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AstraZeneca (AZN) to Acquire Amolyt Pharma for $1.05 Billion
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AstraZeneca (AZN - Free Report) announced that it has entered into a definitive agreement to acquire Amolyt Pharma, a private clinical-stage biotech company developing novel treatments for rare endocrine diseases.
The impending acquisition is set to strengthen AZN’s late-stage rare disease pipeline and expand its bone metabolism franchise by adding late-stage pipeline candidate, eneboparatide (AZP-3601).
Eneboparatide, a PTH receptor 1 agonist with a novel mechanism of action, is Amolyt Pharma’s investigational candidate, which is currently being developed in a phase III study to treat chronic hypoparathyroidism.
Hypoparathyroidism patients suffer from a deficiency in parathyroid hormone production, which often leads to serious debilitating diseases, including chronic kidney disease. Management stated that hypoparathyroidism is one of the largest known rare diseases that affects approximately 115,000 people in the United States and 107,000 in the EU. It is observed that most of the hypoparathyroidism patients are women.
Per AstraZeneca, current supportive therapies available for chronic hypoparathyroid patients do not address theunderlying hormone deficiency, representing a significant unmet medical need for more effective alternative therapy options.
In the past year, shares of AstraZeneca have gained 4.6% compared with the industry’s 33.6% growth.
Image Source: Zacks Investment Research
In the phase II study of eneboparatide for hypoparathyroidism, the candidate achieved normalization of serum calcium levels and demonstrated its potential to eliminate dependence on daily calcium and vitamin D supplementation. Furthermore, in adult chronic hypoparathyroidism and hypercalciuria patients, it was observed that eneboparatide normalized calcium in urine.
Additionally, the phase II study data also showed that for patients with hypoparathyroidism, eneboparatide preserved bone mineral density, which is an important potential benefit in patients with an increased risk of osteopenia or osteoporosis.
Per the terms of the agreement, AstraZeneca is liable to make an upfront payment of $800 million to Amolyt Pharma upon closing of the acquisition. The shareholders of Amolyt Pharma are also eligible to receive an additional contingent payment of $250 million, payable upon the achievement of a specified regulatory milestone, bringing the total deal value up to $1.05 billion, on a cash and debt-free basis.
The acquisition is expected to close by the end of the third quarter of 2024, subject to the satisfaction of certain customary and regulatory conditions.
AZN’s rare disease franchise was formed after the July 2021 acquisition of Alexion. The transaction added five marketed rare disease products, including its blockbuster drugs, C5 inhibitors Soliris and Ultomiris, as well as a growing pipeline of immune-mediated rare disease candidates to AstraZeneca’s portfolio.
The acquisition diversified the company’s portfolio, marking its foray into rare diseases, an increasingly attractive field.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2024 earnings per share (EPS) has increased from 22 cents to 30 cents. During the same period, the estimate for ADMA’s 2025 EPS has increased from 32 cents to 50 cents. In the past year, shares of ADMA have surged 100%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 85%.
In the past 30 days, the Zacks Consensus Estimate for FibroGen’s 2024 loss per share has narrowed from $1.14 to $1.09. During the same period, the estimate for FibroGen’s 2025 loss per share is pegged at 6 cents. In the past year, shares of FGEN have plunged 90%.
FGEN beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 2.26%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet’s 2024 loss per share has remained constant at $1.81. In the past year, shares of ACET have lost 70.8%.
ACET beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 8.36%.
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AstraZeneca (AZN) to Acquire Amolyt Pharma for $1.05 Billion
AstraZeneca (AZN - Free Report) announced that it has entered into a definitive agreement to acquire Amolyt Pharma, a private clinical-stage biotech company developing novel treatments for rare endocrine diseases.
The impending acquisition is set to strengthen AZN’s late-stage rare disease pipeline and expand its bone metabolism franchise by adding late-stage pipeline candidate, eneboparatide (AZP-3601).
Eneboparatide, a PTH receptor 1 agonist with a novel mechanism of action, is Amolyt Pharma’s investigational candidate, which is currently being developed in a phase III study to treat chronic hypoparathyroidism.
Hypoparathyroidism patients suffer from a deficiency in parathyroid hormone production, which often leads to serious debilitating diseases, including chronic kidney disease. Management stated that hypoparathyroidism is one of the largest known rare diseases that affects approximately 115,000 people in the United States and 107,000 in the EU. It is observed that most of the hypoparathyroidism patients are women.
Per AstraZeneca, current supportive therapies available for chronic hypoparathyroid patients do not address theunderlying hormone deficiency, representing a significant unmet medical need for more effective alternative therapy options.
In the past year, shares of AstraZeneca have gained 4.6% compared with the industry’s 33.6% growth.
Image Source: Zacks Investment Research
In the phase II study of eneboparatide for hypoparathyroidism, the candidate achieved normalization of serum calcium levels and demonstrated its potential to eliminate dependence on daily calcium and vitamin D supplementation. Furthermore, in adult chronic hypoparathyroidism and hypercalciuria patients, it was observed that eneboparatide normalized calcium in urine.
Additionally, the phase II study data also showed that for patients with hypoparathyroidism, eneboparatide preserved bone mineral density, which is an important potential benefit in patients with an increased risk of osteopenia or osteoporosis.
Per the terms of the agreement, AstraZeneca is liable to make an upfront payment of $800 million to Amolyt Pharma upon closing of the acquisition. The shareholders of Amolyt Pharma are also eligible to receive an additional contingent payment of $250 million, payable upon the achievement of a specified regulatory milestone, bringing the total deal value up to $1.05 billion, on a cash and debt-free basis.
The acquisition is expected to close by the end of the third quarter of 2024, subject to the satisfaction of certain customary and regulatory conditions.
AZN’s rare disease franchise was formed after the July 2021 acquisition of Alexion. The transaction added five marketed rare disease products, including its blockbuster drugs, C5 inhibitors Soliris and Ultomiris, as well as a growing pipeline of immune-mediated rare disease candidates to AstraZeneca’s portfolio.
The acquisition diversified the company’s portfolio, marking its foray into rare diseases, an increasingly attractive field.
AstraZeneca PLC Price and Consensus
AstraZeneca PLC price-consensus-chart | AstraZeneca PLC Quote
Zacks Rank and Stocks to Consider
AstraZeneca currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the drug/biotech industry are ADMA Biologics (ADMA - Free Report) , FibroGen (FGEN - Free Report) and Adicet Bio, Inc. (ACET - Free Report) . While ADMA sports a Zacks Rank #1 (Strong Buy), FGEN and ACET carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for ADMA Biologics’ 2024 earnings per share (EPS) has increased from 22 cents to 30 cents. During the same period, the estimate for ADMA’s 2025 EPS has increased from 32 cents to 50 cents. In the past year, shares of ADMA have surged 100%.
ADMA beat estimates in three of the trailing four quarters and matched in one, delivering an average earnings surprise of 85%.
In the past 30 days, the Zacks Consensus Estimate for FibroGen’s 2024 loss per share has narrowed from $1.14 to $1.09. During the same period, the estimate for FibroGen’s 2025 loss per share is pegged at 6 cents. In the past year, shares of FGEN have plunged 90%.
FGEN beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 2.26%.
In the past 30 days, the Zacks Consensus Estimate for Adicet Bio’s 2023 loss per share has remained constant at $3.39. During the same period, the consensus estimate for Adicet’s 2024 loss per share has remained constant at $1.81. In the past year, shares of ACET have lost 70.8%.
ACET beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 8.36%.