Why AstraZeneca Is Buying Icosavax For $1.1 Billion

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published December 12, 2023
12:48 PM EST
AstraZeneca

JONATHAN NACKSTRAND / Contributor / Getty images

Key Takeaways

  • AstraZeneca agreed to pay $1.1 billion for Icosavax to expand its reach into cutting-edge vaccine technology with Icosavax's innovative vaccine platform.
  • Icosavax's lead treatment, heading for a Phase 3 study, is a "first-in-class" combination RSV and hMPV vaccine.
  • AstraZeneca will pay Icosavax's shareholders $15 per share, a 43% premium to Monday's closing price, with other financial incentives possible.

Shares of Icosavax (ICVX) skyrocketed over 48% in early trading Tuesday after AstraZeneca (AZN) agreed to purchase the biopharma company for $1.1 billion to expand its reach into cutting-edge vaccine technology. 

Through the deal, AstraZeneca would get access to Icosavax’s “innovative protein virus-like particle (VLP) platform.” Its lead experimental treatment is a Phase 3-ready shot using VLP to prevent both respiratory syncytial virus (RSV) and human metapneumovirus (hMPV). They are leading causes of respiratory illness and hospitalizations for those aged 60 and up or have other chronic conditions. AstraZeneca added that currently there are no effective treatments or preventative therapies for hMPV or combination RSV and hMPV vaccines.

Iskra Reic, executive vice president of AstraZeneca Vaccines & Immune Therapies, noted that VLP vaccine technology “has the potential to transform prevention against severe infectious diseases, including RSV and hMPV.”

The company explained that AstraZeneca would pay Icosavax’s investors $15 per share in cash at closing, with the potential of an additional $5 per share upon achieving a specified regulatory milestone and a sales milestone. At $15 per share, the buyout represents a 43% premium to Icosavax’s closing price on Monday. The transaction is expected to close in the first quarter of next year.

Icosavax shares were up 48.1% as of about 12:45 p.m. ET Tuesday following the news. American Depositary Receipts (ADRs) of AstraZeneca were also 0.8% higher.

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  1. AstraZeneca. "AstraZeneca to acquire Icosavax, including potential first-in-class RSV and hMPV combination vaccine with positive Phase II data."

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