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Alpine Immune stock downgraded by Leerink Partners after Vertex acquisition

EditorEmilio Ghigini
Published 04/12/2024, 05:59 AM

Friday - Leerink Partners has downgraded Alpine Immune Sciences (NASDAQ:ALPN) stock from Outperform to Market Perform, aligning with Vertex Pharmaceuticals (NASDAQ:VRTX)' acquisition offer of $65 per share. The new price target represents a significant increase from the previous $42.00 target, reflecting the terms of the proposed buyout.

The transaction, which values Alpine Immune Sciences at approximately $4.9 billion, is seen as a strategic move for Vertex. The acquisition allows Vertex to expand its expertise in clinical development and commercial infrastructure into specialty markets, particularly benefiting from Alpine's povetacicept, a treatment for IgA nephropathy (IgAN) and other B-cell mediated autoimmune diseases.

Leerink Partners' adjustment of the price target to $65 corresponds with the acquisition price offered by Vertex. The firm believes that the deal will enhance Vertex's portfolio with what could be a leading therapy in its class, with broad applications in renal and B-cell mediated autoimmune conditions.

The minimal overlap in pipeline programs between Alpine Immune Sciences and Vertex is expected to mitigate regulatory risks from the Federal Trade Commission (FTC). The closure of the deal is anticipated in the second quarter of 2024, according to company guidance, which aligns with Leerink Partners' expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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