TLDR
- AstraZeneca (AZN) rose 3.31% on a report of a $10 billion Rhythm bid
- Rhythm (RYTM) closed up 28% at $110.68
- The non-binding offer is worth up to $134 a share, milestones included
- The Wall Street Journal reported a $124 a share offer last month
- Neither company has confirmed a deal
Rhythm Pharmaceuticals (RYTM) closed up 28% at $110.68 on Wednesday. The jump followed a Reuters report that AstraZeneca (AZN) offered about $10 billion for the company.
AstraZeneca stock rose 3.31% on the day. The drugmaker carries a market value of about $292 billion.
Three people familiar with the matter described the proposal to Reuters. It is non-binding.
The offer reaches as much as $134 a share when milestone payments are counted. That is about 21% above where Rhythm closed on Wednesday.
Two Offer Numbers, One Bidder
The Wall Street Journal reported a different figure earlier in the day. It said AstraZeneca offered $124 a share last month.
Reuters did not explain how the two numbers fit together. Its $134 figure includes milestone payments.
Rhythm’s market cap now sits near $7.64 billion. The reported $10 billion offer is well above that mark.
The Journal also said AstraZeneca had shown interest in Rhythm before. It renewed its pursuit in recent months.
Alexion would lead the deal. AstraZeneca bought the rare-disease unit for $39 billion in 2021.
What Rhythm Brings to the Table
Rhythm develops therapies for rare neuroendocrine and metabolic disorders. Its approved drug is Imcivree.
In March, the FDA expanded the use of Imcivree. It became the first U.S.-approved treatment for a rare form of obesity caused by brain damage.
Rhythm targets rare genetic forms of obesity, not the wider weight-loss market. It is also developing treatments for other rare conditions.
Reuters said a deal would give AstraZeneca an established presence in the fast-growing field. Strong demand for drugs from Novo Nordisk and Eli Lilly has fueled forecasts of $100 billion in annual sales over the next decade.
CEO Pascal Soriot wants to turn investor focus back to growth. The past few months were bumpy for the company.
Clinical trial setbacks weighed on the stock. So did reports of a possible deal with Bristol Myers Squibb.
An AstraZeneca spokesperson declined to comment on the offer. Rhythm did not respond to a request for comment, and no deal has been confirmed.
