## Vertex to Bolster Immunotherapy Portfolio With Alpine Immune Sciences Acquisition – Povetacicept Positioned as Multi-Disease Solution

**Strategic Combination Accelerates Path to Patients for Promising IgAN Treatment**

Vertex Pharmaceuticals and Alpine Immune Sciences have formalized a merger agreement, with Vertex acquiring Alpine for $65 per share in an all-cash transaction valued at approximately $4.9 billion. The combination brings together two organizations aligned on scientific innovation and represents a significant expansion of Vertex's capabilities in protein engineering and targeted immunotherapies. The transaction, unanimously approved by both boards, is slated to complete in the second quarter of 2024, contingent on customary closing conditions and Hart-Scott-Rodino clearance.

**Alpine's Clinical Asset Addresses Major Unmet Medical Need**

At the heart of this acquisition lies povetacicept (ALPN-303), a dual antagonist targeting BAFF and APRIL cytokines implicated in multiple autoimmune diseases. Through Phase 2 studies, the molecule has demonstrated potential best-in-class efficacy in IgA nephropathy (IgAN) — a serious, progressive kidney disease affecting approximately 130,000 Americans and representing the most common form of primary glomerulonephritis globally. Currently, no approved therapies target IgAN's underlying disease mechanisms, leaving patients with limited treatment options and a significant portion progressing toward end-stage renal disease.

Povetacicept's mechanism of action positions it uniquely within the immunotherapy landscape. By inhibiting both BAFF and APRIL — which regulate B cell, T cell, and innate immune cell activation — the compound achieved superior binding affinity and potency compared to single-target inhibitors in preclinical evaluations. The molecule is on track to advance into Phase 3 clinical development in the second half of 2024.

**Pipeline-in-a-Product Potential Unlocks Broader Opportunities**

Beyond IgAN, povetacicept holds significant promise as what Alpine and Vertex describe as a "pipeline-in-a-product" — a single therapeutic with potential application across multiple serious autoimmune conditions. Active clinical investigations are underway in membranous nephropathy, lupus nephritis, and autoimmune cytopenias, each representing substantial markets with considerable unmet medical needs. This multi-indication potential substantially amplifies the commercial and clinical value of the acquisition.

**Complementary Expertise Strengthens Vertex's Scientific Platform**

For Vertex, the acquisition extends far beyond securing a single asset. Alpine's protein engineering expertise and immunotherapy development capabilities add critical technical depth to Vertex's existing toolbox. The company's track record in translating engineered protein platforms into clinically validated candidates provides valuable methodological knowledge that Vertex plans to leverage across its broader pipeline.

Reshma Kewalramani, CEO of Vertex, emphasized the strategic rationale: "Alpine represents a compelling fit that furthers our mission of delivering transformative medicines for serious diseases in specialty markets. We're positioned to advance povetacicept on an accelerated timeline while exploring its full therapeutic potential across multiple autoimmune indications."

Mitchell H. Gold, Alpine's Executive Chairman and CEO, highlighted shared values driving the combination: "Vertex's commitment to patient outcomes and relentless innovation approach align closely with Alpine's culture. This partnership amplifies our ability to make meaningful clinical impact in autoimmune and inflammatory conditions worldwide."

**Transaction Structure and Timeline**

Vertex will initiate a cash tender offer for all outstanding Alpine shares at $65 per share, with expected closing in Q2 2024. The transaction's equity value approximates $4.9 billion, or roughly $4.6 billion net of estimated cash acquired. Leading financial and legal advisors support both parties — Lazard and Skadden representing Vertex, while Centerview Partners and Fenwick & West advise Alpine.

Conference calls scheduled for April 10, 2024 will provide additional detail: Vertex hosts its presentation at 4:30 pm ET, followed by Alpine's clinical data discussion at 5:15 pm ET, where updated results from the RUBY-3 Phase 1b/2a povetacicept study will be shared with the investment community.

**The Broader Significance for Immunotherapy Development**

This acquisition underscores a broader industry trend: consolidation in specialty therapeutics is increasingly driven by validated clinical assets rather than early-stage technologies. Povetacicept's demonstrated efficacy signal in Phase 2 IgAN studies — achieving best-in-class potential status — provided the foundation for this valuation. For investors tracking immunotherapy momentum, the transaction signals renewed confidence in dual-mechanism BAFF/APRIL inhibition as a viable therapeutic approach, particularly in kidney disease where validated treatment modalities remain scarce.

The combination of Alpine's engineered protein capabilities with Vertex's scale, regulatory expertise, and commercial infrastructure positions povetacicept for meaningful acceleration toward patient availability.