AstraZeneca made $10 billion offer for obesity drugmaker Rhythm, sources say
AZN•AstraZeneca made a non-binding offer of about $10 billion to acquire Rhythm Pharmaceuticals, with a proposal of up to $134 per share, including milestone payments, people familiar with the matter said. An earlier report said the offer was $124 per share.
1. Offer details
AstraZeneca offered up to $134 a share in a non-binding proposal to acquire Rhythm Pharmaceuticals, valuing the deal at about $10 billion, three people familiar with the matter said. The proposal includes payments tied to milestone achievements. An earlier report said AstraZeneca had offered $124 per share last month.
2. Companies and treatments
The acquisition would be pursued through AstraZeneca's rare-disease business Alexion, two of the people said. Rhythm develops treatments for rare metabolic disorders and severe obesity; its therapy Imcivree was approved in March for a rare form of obesity caused by brain damage. Rhythm shares closed up 28% at $110.68, giving the company a market capitalization of about $7.64 billion.
3. Market context
AstraZeneca has faced clinical trial setbacks in recent months, while reports of a potentially transformative deal with Bristol Myers Squibb weighed on its shares. Rhythm's therapies target rare genetic forms of obesity, rather than the broader weight-loss market.
