Darwin's Our Take 7.13.26: Vertex’s acquisition of Crinetics tops the latest spree of deals

The dealmaking momentum among Big Pharma, biopharma, and biotech companies so far this year shows no signs of slowing, as a number of notable transactions have been announced in the last couple of weeks.

The largest by far was Boston-based biotech Vertex Pharmaceuticals’ agreement to acquire Crinetics Pharmaceuticals in a deal valued at approximately $10 billion. Crinetics, based in San Diego, develops treatments for endocrine diseases.

Vertex will add Crinetics’ Palsonify (paltusotine) to its drug portfolio through the acquisition. The FDA approved Palsonify in September for adults with acromegaly, a condition in which a pituitary tumor secretes excess growth hormone.

Palsonify, a once-daily oral somatostatin receptor agonist, could become a new standard-of-care therapy for acromegaly, Dr. Reshma Kewalramani, Vertex’s CEO, said in a news release.

Among the various candidates in Crinetics’ clinical development pipeline, the most advanced is atumelnant, an oral ACTH receptor agonist in Phase III testing for congenital adrenal hyperplasia, a chronic genetic condition that affects the adrenal glands. The condition typically leads to impaired cortisol synthesis and excess androgen production. Atumelnant has also shown potential as a treatment for Cushing’s syndrome.

Crinetics’ pipeline also includes several preclinical candidates, one of which is an oral GLP-1.

Under the definitive agreement, Vertex will pay $85 per share in cash for outstanding Crinetics shares, a 102% premium to the closing price of the stock just ahead of the announcement (for a total of $8.8 billion net of estimated cash acquired through the transaction).

Both companies’ boards have approved the acquisition, which is expected to close in the third quarter. The transaction is subject to customary closing conditions, including approvals by regulators and Crinetics’ shareholders.

In other noteworthy announcements, Novartis revealed that it will pay $1.1 billion up front to acquire Myricx Bio, a privately held startup based in London. The acquisition will significantly diversify Novartis’ oncology pipeline.

Myricx is developing a new class of antibody-drug conjugates (ADCs) with a differentiated payload. The payload platform is designed to inhibit an enzyme called N-myristoyltransferase, or NMT, and could prove useful in treating cancers that have become resistant to commonly used ADC payloads, such as topoisomerase I inhibitors.

The biotech’s two lead assets, both ready for Phase I development, are directed toward the targets HER2 and B7-H3, proteins often found in breast and lung cancers.

Myricx could receive up to an additional $400 million in milestone payments, according to the press release. If customary closing conditions are satisfied, the deal is expected to close by the end of this year.

Meanwhile, AstraZeneca is expanding its relationships with two Chinese pharmaceutical companies.

On July 2, AstraZeneca entered into another agreement with CSPC Pharmaceuticals, this one focusing on advancing drug candidates against two undisclosed kidney disease targets, Fierce Biotech reported.

The two companies have established multiple partnerships in recent years, including a collaboration agreement signed in January that could be worth $18 billion. That alliance is centered on weight management drugs.

Under their latest agreement, CSPC is eligible to receive an upfront payment of $30 million and approximately $1.74 billion in milestone payments.

AstraZeneca’s other recent deal, announced last Wednesday, is with Sino Biopharmaceutical. The focus of the agreement is TQC3721, a PDE3/4 inhibitor being evaluated in Phase II and Phase III clinical trials as a potential treatment for chronic obstructive pulmonary disorder (COPD).

Not counting sales royalties, Sino Biopharmaceutical could receive as much as $1.9 billion through the deal, including an upfront payment of $200 million and various milestone payments, according to BioSpace.

French drugmaker Ipsen also entered into a pair of agreements lately — one to acquire Kartos Therapeutics, a biotech based in Redwood City, Calif., and the other to acquire a Swiss biotech, Memo Therapeutics.

In the deal with Kartos, Ipsen will gain an investigational oral MDM2 inhibitor, navtemadin, which is in Phase III testing as an add-on to Incyte’s Jakafi (ruxolitinib) for patients with myelofibrosis, a rare type of blood cancer.

Ipsen expects to complete the acquisition in the third quarter, pending regulatory approval and the satisfaction of other customary closing conditions. At closing, Ipsen will pay Kartos shareholders $450 million. Subsequent milestone payments could total $1.3 billion, according to the press release.

The Memo Therapeutics acquisition will expand Ipsen’s rare disease portfolio by adding potravitug, a first-in-class BK polyomavirus antibody. The candidate is in Phase II development as a treatment for BK polyomavirus-associated nephropathy, which can result in transplant failure in patients who have undergone kidney transplantation.

Ipsen will pay approximately $228 million up front for Memo Therapeutics and could pay various milestone payments that would bring the total value of the deal up to approximately $798 million.

The announcement noted that all of Memo Therapeutics’ assets other than those associated with the potravitug program will be transferred to a new company named Memorises Bio, which is to be retained by Memo Therapeutics’ shareholders.

Ipsen anticipates finalizing this transaction in the third quarter as well, provided the required closing conditions are satisfied.

One other significant transaction announced recently is the sale of South San Francisco-based Theravance Biopharma.

Vancouver, B.C.-based Zymeworks entered into a definitive agreement to acquire Theravance in a deal valued at approximately $929 million.

Through the transaction, Zymeworks will add to its partnered portfolio Theravance’s Yupelri (revefenacin), a long-acting muscarinic antagonist (LAMA) indicated as a maintenance treatment for COPD.

Under the agreement, Zymeworks will pay $17 per share for outstanding shares of Theravance. The boards of both companies have approved the transaction, which is subject to regulatory and shareholder approvals as well as other closing conditions.

Zymeworks expects to complete the transaction later this year. Additional details are provided in the news release

HCR #211: An Honest Assessment of Value-Based Care, with Dr. Elliott Fisher

Decades after the research that proved high-spending regions don't produce better care, and 20 years after the term "accountable care organization" was coined, the U.S. health care system still runs overwhelmingly on fee-for-service. Dr. Elliott Fisher, Professor of Health Policy at the Dartmouth Institute and the Geisel School of Medicine and the researcher who coined the term ACO, returns to Health Care Rounds for a frank look at why ACOs have fallen short of its promise and offers realistic and novel options are for improving our fragmented system. Listen on Spotify, Apple, YouTube, or wherever you get your podcasts.

What else you need to know

Ascension bid nearly $1 billion for Williamson Health, an independent, nonprofit, regional health system based in Franklin, Tenn. Williamson Health has more than 2,400 employees and over 30 locations; its flagship facility, Williamson Medical Center, is supported by more than 900 physicians and advanced practice providers. The Ascension Saint Thomas network in and around Nashville includes 18 hospitals and more than 350 sites of care.

Along with a $700 million purchase price, Ascension agreed to capital investments, upgrades to Williamson Health’s electronic health record system, service line expansions, and commitments to charity care and community programs. In all, the deal’s economic value approaches $1 billion.

As part of the strategic planning process, Williamson Health’s board of trustees distributed a request for proposal last year to 28 healthcare organizations. HCA Healthcare, Optum, and Ascension all submitted final proposals. Although the board voted unanimously last week to proceed with the sale to Ascension Saint Thomas, the transaction must still be approved by the Williamson County Commission and other regulatory authorities.

Before Ascension and Williamson Health negotiate a definitive agreement, they will draft a nonbinding letter of intent for the county commission to review. Williamson Health said in the announcement that the sale most likely would not be finalized until sometime in 2027 or 2028.

Evernorth introduced a new AI-powered specialty pharmacy program called Pharmacy Forward. The program is launching initially with Evernorth’s Accredo Specialty Pharmacy and is backed by a $100 million investment through 2028, the news release noted. It’s designed to help care teams deliver “more connected, informed support” by integrating clinical data and insights, AI-generated summaries, and predictive analytics. According to Evernorth, the program will help clinicians identify patients who are at risk of falling off therapy or experiencing adverse events. It’s also expected to substantially reduce the time clinicians spend on documentation.

Additional AI functions built into Pharmacy Forward will enable more personalized patient support; accelerate prescription processing (e.g., by ensuring prior authorization submissions are complete and determining eligibility for copay assistance); and enhance prescription delivery so that patients can begin treatment sooner. Evernorth said it expects to extend many of the program’s capabilities to its other pharmacies’ operations in the future.

Anthropic launched Claude Science, described as “an AI workbench for scientists” in the announcement. The platform is being marketed to life sciences researchers as a means to accelerate the drug discovery process and lower associated costs. It integrates scientific databases and lab tools with computing power in a single interface. At the launch event in San Francisco on June 30, Zubair Jandali, head of Anthropic’s healthcare and life sciences commercial team, said: “Claude can run the work — not help with it, not accelerate it — even run it.”

In conjunction with the product launch, Anthropic is commencing an internal drug discovery program focused on neglected diseases — illnesses traditional drug development companies typically would not explore because they are deemed commercially unviable. Both launches precede a planned Anthropic initial public offering that could occur later this year.

CMS intends to substantially reduce 340B drug payments, as outlined in the 2027 Hospital Outpatient Prospective Payment System and Ambulatory Surgery Center (OPPS) proposed rule. Based on a fact sheet the agency issued, CMS is proposing to pay the average sales price minus 33.4% for 340B-acquired drugs, starting next year. Citing the results of a hospital drug acquisition cost survey conducted earlier this year, CMS said the payment cuts would more accurately align Medicare payments with those costs.

According to CMS’ estimates, the proposed reduction in 340B drug payments would reduce (traditional) Medicare drug payments by $4.55 billion and beneficiary drug payments by $1.15 billion in the first year. Because the policy has to be implemented in a budget neutral manner, the proposed reduction in 340B drug payments would increase outpatient payments for non-drug services by an equivalent sum. This would have the effect of shifting money that 340B hospitals are receiving to a broader pool of providers.

Kaiser Permanente opened the first two of three planned medical offices in northern Nevada as part of its joint venture with Renown Health. Members can now obtain primary care and lab services at the Kaiser Permanente Del Monte Medical Offices in Reno and the Kaiser Permanente Ion Medical Offices in Sparks. Pharmacy and imaging services are expected to be available at both locations next year. The third medical facility is expected to open later this year in central Reno, according to the press release.

Additionally, Hometown Health, a health plan that Renown previously owned, is now jointly owned and is transitioning to the Kaiser Permanente name. Kaiser will offer plan options in northern Nevada during open enrollment this fall for the 2027 plan year.

What we’re reading

Private equity’s joint venture takeover of nonprofit healthcare. Private Equity Stakeholder Project, July 2026.

Addressing Medical Affordability Without Compromising Care. Health Affairs, 7.9.26

Thinking about the Impact of Artificial Intelligence on U.S. Health Care Costs and Spending Growth. NEJM Catalyst, 7.8.26 (abstract available; subscription required for full access)