AstraZeneca Buys Respiratory Vaccine Developer Icosavax in $1.1 Bn Deal

Icosavax is developing a combination vaccine candidate targeting RSV and human metapneumovirus (hMPV). RSV is a leading cause of pneumonia in toddlers and the elderly, while hMPV causes very similar respiratory tract infections.

Anglo-Swedish drugmaker AstraZeneca has agreed to buy respiratory syncytial virus (RSV) vaccine developer Icosavax (ICVX.O) in a deal valued at up to $1.1 billion.

Icosavax is developing a combination vaccine candidate targeting RSV and human metapneumovirus (hMPV). RSV is a leading cause of pneumonia in toddlers and the elderly, while hMPV causes very similar respiratory tract infections.

The cash deal aimed at strengthening AstraZeneca's drugs pipeline that values US-listed Icosavax at $15 per share. Additionally, there is a provision for an additional $5 per share if specific milestones are achieved.

Sharing his views, Iskra Reic, executive VP, Vaccines and Immune Therapies, AstraZeneca, said, "This combination of RSV and hMPV is a really powerful combination because they have a common structural biology and also overlapping seasons."

The agreement is designed to tap into the substantial RSV market, which also aligns with a time when AstraZeneca experienced a significant decrease in sales of its COVID-19 vaccine after the conclusion of the pandemic.

Talking about COVID-19, AstraZeneca made its first foray into vaccines by co-developing the COVID-19 shot with Oxford University. It set up a separate vaccine and antibody therapy division in late 2021.

The proposed combination vaccine would expand AstraZeneca's existing RSV portfolio, featuring Beyfortus, developed in collaboration with Sanofi (SASY.PA) and potentially becoming the company's inaugural RSV vaccine.

"We believe it (the deal) offers the opportunity to accelerate, and expand access to, our potential first-in-class combination vaccine for older adults at risk from RSV and hMPV," Adam Simpson, CEO, Icosavax, stated.

There are currently no treatment or prevention options for hMPV or combination vaccines for RSV. RSV is a break from AstraZeneca's expertise in oncology and comes after several acquisitions this year, including a licensing deal last month that gave it entry into the booming anti-obesity drug market.

Founded in 1999, through the merger of the Swedish Astra AB and the British Zeneca Group, the pharmaceutical biotechnology company aims to transform the lives of people affected by rare diseases.

A few days back, AstraZeneca and Absci joined hands in a $247 million cancer drug deal. The partnership seeks to leverage Absci's Al technology for large-scale protein analysis to find a viable oncology therapy, a leading focus of AstraZeneca. However, the companies didn’t specify the type of cancer they plan to target.