In a bid to strengthen its respiratory syncytial virus (RSV) vaccine portfolio, AstraZeneca (NASDAQ:AZN) has agreed to acquire U.S. vaccine developer Icosavax (NASDAQ:ICVX) in a deal valued at up to $1.1B.
The deal values Icosavax (ICVX) at $15/share in cash at closing, plus a non-tradable contingent value right for up to $5/share in cash if certain milestones are met. The upfront cash portion represents a premium of 43% to Icosavax’s (ICVX) closing price on December 11.
AstraZeneca (AZN) will also acquire the cash and marketable securities on Icosavax’s balance sheet, which totaled $229M as of September 30, 2023.
The proposed deal will boost AstraZeneca’s (AZN) expertise in RSV, strengthening its vaccines & immune therapies late-stage pipeline with Icosavax’s (ICVX) lead investigational vaccine candidate, IVX-A12.
IVX-A12 is a Phase III-ready, combination protein virus-like particle (VLP) vaccine indicated to target both RSV and human metapneumovirus (hMPV), two leading causes of severe respiratory infection in adults 60 years of age and older and those with chronic conditions.
There are currently no treatments or preventative therapies for hMPV and no combination vaccines for RSV.
Iskra Reic, Executive Vice President, Vaccines & Immune Therapies, AstraZeneca, said: “This virus-like particle vaccine technology has the potential to transform prevention against severe infectious diseases, including RSV and hMPV. With the addition of Icosavax’s Phase III-ready lead asset to our late-stage pipeline, we will have a differentiated, advanced investigational vaccine, and a platform for further development of combination vaccines against respiratory viruses.”
U.S.-listed shares of AstraZeneca (AZN) were up 1.54% premarket