Nov 4 (Reuters) – AstraZeneca made an offer of about $10 billion to acquire obesity drugmaker Rhythm Pharmaceuticals, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
The British drugmaker offered about $124 per share for Rhythm last month, the report said.
Shares of Rhythm closed up 28% at $110.68 on the news, giving it a market capitalization of about $7.64 billion, according to LSEG data.
AstraZeneca had previously expressed interest in Rhythm, which develops treatments for rare metabolic disorders and severe obesity, and renewed its pursuit in recent months, the report added.
AstraZeneca declined to comment, while Rhythm did not immediately respond to requests for comment.
In March, the US Food and Drug Administration expanded the use of Rhythm’s therapy, Imcivree, for a rare form of obesity caused by brain damage, making it the first treatment to be approved in the country for the condition.
The company is also developing treatments for additional rare neuroendocrine and metabolic diseases.
The obesity drug market has become one of the pharmaceutical industry’s most coveted sectors, driven by strong demand for treatments from Novo Nordisk and Eli Lilly and expectations that sales could exceed $100 billion annually over the next decade.
While Rhythm’s therapies target rare genetic forms of obesity rather than the broader weight-loss market, an acquisition would give AstraZeneca an established commercial presence in the fast-growing field while expanding its rare disease portfolio.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Leroy Leo)
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