April 22, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Redwood City, Calif.-based Relypsa ’s took a small hop again as rumors concerning a buyout resurfaced. The jump wasn’t as dramatic as its April 7 jump on similar rumors, when it went from $14.51 on April 6 to $24.32 on April 7. Shares traded for $17.46 on April 20 and are currently trading for $18.81.
The original pop occurred when company insiders indicated that potential buyers had contacted the company about an acquisition and that the company was seriously considering those offers. Relypsa is apparently working with Centerview Partners Holdings LLC, an investment bank, to evaluate offers.
Relypsa focuses on polymer-based medicines for overlooked and undertreated disorders. In December 2015, its drug Veltassa (patiromer) went for sale in the U.S. to treat hyperkalemia, or elevated blood potassium. Analysts project the market for the drug could be $6 billion.
Relypsa’s nearest competitor is under development by San Mateo, Calif.-based ZS Pharma . Its compound, ZS-9 (sodium zirconium cyclosilicate), had positive interim results in a Phase III trial in November 2015. In December, UK-based AstraZeneca bought the company for $2.7 billion.
But Reuters indicated earlier this month that several other companies that had been outbid by AstraZeneca, were eyeing Relypsa. It’s possible that AstraZeneca might be one of the bidders, which would further strengthen its hold on the hyperkalemia market, and essentially eliminate competition for ZS-9 if it gets approved.
Other potential buyers floated include Paris-based Sanofi and Swiss company Actelion Pharmaceuticals . Actelion bid $2.5 billion for ZS Pharma.
Yesterday Relypsa announced that it will be presenting data on Veltassa as an oral suspension at the National Kidney Foundation (NKF) 2016 Spring Clinical Meetings, which will be held in Boston from April 27 to May 1.
The data will include a proof of concept study for Veltassa on potassium and phosphate levels in six hyperkalemia patients on hemodialysis, a study that looked at Veltassa’s effects on urine calcium and phosphate excretion from a Phase I study in healthy adults, and a post-hoc sub-group analysis of patients with resistant hypertension in a Phase II AMETHYST-DN trial that looked at hyperkalemia patients on Veltassa over 52 weeks with chronic kidney disease and Type 2 diabetes who were also taking renin angiotensin aldosterone system (RAAS) inhibitors.
The company also announced on April 15 that six new employees had been granted the option to purchase an aggregate of 17,650 shares of company stock with a per share exercise price of $18.56, which was the closing price on that date. It also included 8,825 restricted stock units.
Equities.com today noted that after today’s rise, the company’s market cap was about $835.04 million. Over the last year, its trading range has been between $37.45 and $10.26.
The company employs about 406 people.
