Vertex Pharmaceuticals (NASDAQ:VRTX) has entered into an all-cash deal worth $4.9 billion to acquire Alpine Immune Sciences (NASDAQ:ALPN). The deal is expected to bolster VRTX’s presence in the treatment of autoimmune and inflammatory diseases. Following the deal announcement, ALPN stock gained over 36% in the extended trading session, while VRTX stock declined 1%.
The key driver for this acquisition is Alpine’s lead drug candidate, povetacicept, which is expected to enter Phase 3 trials later this year for IgA nephropathy, a kidney autoimmune disease. It is noteworthy that about 130,000 people in the U.S. are diagnosed with IgAN, which has a limited number of available treatment options. If povetacicept receives regulatory approval, it holds the potential to enhance VRTX’s revenues in the future.
According to the terms of the deal, Vertex will pay $65 per share to Alpine shareholders. The purchase price reflects a 38% premium to ALPN’s closing price on Wednesday. The deal is expected to close in the second quarter of 2024. Furthermore, Alpine is expected to pay a fee of $173 million upon termination of the deal.
Top Analyst Is Bullish on VRTX Stock
Following the announcement of the deal, a Top-rated analyst from Wells Fargo, Mohit Bansal, reiterated a Buy rating on Vertex stock. Also, his price target of $540 implies an upside potential of 35.8% from the current level. Interestingly, Bansal has an average return of 13.19% and a success rate of 68% on VRTX.
Investors should note that TipRanks ranks the Top analysts according to industry, timeline, and benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations.
Is VRTX a Good Stock to Buy Now?
Analysts remain bullish about VRTX with a Moderate Buy consensus rating based on 17 Buys, seven Holds, and two Sells. The analysts’ average price target on Vertex stock of $438.25 implies an upside potential of 10.23% at current levels. Over the past six months, shares of the company have gained about 9%.
If you’re wondering which analyst you should follow if you want to buy and sell VRTX stock, the most accurate and profitable analyst covering the stock (on a one-year timeframe) is Brian Skorney from Robert W. Baird, with an average return of 33.94% per rating and a 100% success rate. Click on the image below to learn more.
