AstraZenaca buys Californian hyperkalaemia specialist ZS Pharma in $2.7bn deal
AstraZeneca is buying California-based ZS Pharma in a deal that will value the smaller company at around $2.7bn (£1.7bn).
AstraZeneca will acquire all of the capital stock of ZS Pharma, which has around 200 employees, for $90 per share in an all-cash transaction.
ZS Pharma specialises in treatment for hyperkalaemia, a serious condition of elevated potassium in the bloodstream, typically associated with chronic kidney disease and chronic heart failure.
The deal will give AstraZeneca access to a "best-in-class" treatment for the disease, which comes in the form of a compound called ZS-9. This drug is currently being reviewed by the US Food and Drug Administration, and is expected to be ready for May 2016.
Current estimates for global peak year sales of ZS-9 exceed $1 billion.
AstraZeneca chief executive Pascal Soriot said: "Hyperkalaemia can be a life-threatening condition for patients with chronic kidney disease and chronic heart failure, however the risk is underappreciated and prevalence is increasing.
"This acquisition complements our strategic focus on cardiovascular and metabolic Disease by adding a potential best-in-class treatment to our portfolio of innovative medicines. We look forward to welcoming the ZS Pharma team to AstraZeneca."