Icosavax, a Seattle-based vaccine developer, experienced a significant boost in stock prices, surging by 47% in premarket trading on Tuesday. The reason for this surge is the recent announcement of a deal between Icosavax and pharmaceutical giant AstraZeneca.
AstraZeneca’s shares also saw an increase of 1.8% in premarket trading following news of the acquisition. The deal, expected to be finalized in the first quarter of next year, involves AstraZeneca acquiring Icosavax for approximately $1.1 billion in cash. This acquisition values each share of Icosavax at $15, a substantial premium compared to the stock’s closing price of $10.49 on Monday.
The primary motivation behind this deal is Icosavax’s development of a potential vaccine known as IVX-A12. This vaccine aims to combat two common respiratory diseases prevalent in adults aged 60 and older: respiratory syncytial virus (RSV) and human metapneumovirus (hMPV). Presently, there are no available treatments or preventative therapies for hMPV, nor are there any combination vaccines for RSV. However, phase two trial data has shown promising results, indicating that IVX-A12 stimulates robust immune responses against both diseases.
This acquisition represents the latest development in the rapidly growing biotech and pharmaceutical industry. Notably, AbbVie made headlines with its recent announcement to acquire Cerevel Therapeutics, marking its second major deal in as many weeks. The biotech sector, in particular, has witnessed a surge in deals as the year comes to a close, creating a positive outlook for continued deal momentum into 2024.