Elise Amendola/AP (file)
AstraZeneca has made a non-binding offer of about $10 billion for Rhythm Pharmaceuticals, including up to $134 per share with milestone payments, Reuters reported Wednesday, citing three people familiar with the matter.
The proposal is not an agreed acquisition. The maximum reported per-share value includes payments tied to milestones and should not be read as an all-cash payment upfront.
The Wall Street Journal earlier reported that AstraZeneca had offered about $124 per share for Rhythm last month. Reuters subsequently reported the non-binding proposal and its milestone-linked terms based on its own sources.
Rhythm shares jump
Rhythm shares closed 28% higher at $110.68, giving the drugmaker a market value of about $7.64 billion, Reuters reported. The rally followed news of the approach, but neither company has announced a signed transaction.
AstraZeneca declined to comment. Rhythm representatives did not respond to a request for comment, according to Reuters.
Alexion would lead the acquisition
Two of Reuters’ sources said the acquisition would be led by Alexion, AstraZeneca’s rare-disease division. AstraZeneca acquired Alexion for $39 billion in 2021.
Rhythm develops treatments for rare neuroendocrine and metabolic disorders, including severe obesity. Its focus is distinct from the broader market for weight-loss treatments: the reported approach would expand AstraZeneca’s rare-disease portfolio as well as its presence in obesity.
The Journal reported that AstraZeneca had previously expressed interest in Rhythm and renewed its pursuit in recent months. Details of the latest proposal remain based on people familiar with the discussions, rather than a public agreement or company confirmation.
The terms and company responses are set out in the updated Reuters report. Whether the non-binding proposal leads to a negotiated deal, and on what final terms, remains unresolved.
JBizNews Desk | New York
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