AstraZeneca Makes Non-Binding Offer of About $10 Billion to Acquire Rhythm
Key Facts
Reuters reported on Nov. 4 that AstraZeneca made a non-binding offer of about $10 billion to acquire Rhythm Pharmaceuticals, citing three people familiar with the matter. The offer puts the U.S. company, which specializes in drug treatments for obesity and rare disorders, in line for a possible addition to the AstraZeneca group. But the proposal is not a definitive agreement; Reuters described it as non-binding. The proposed consideration is capped at $134 per share, including payments tied to the achievement of milestones. That figure therefore does not represent a guaranteed fixed cash price for shareholders.
The latest offer followed an earlier Wall Street Journal report that AstraZeneca had offered $124 per share in the previous month, Reuters reported. The $134 ceiling represents an increase on that earlier offer, but remains tied to milestone payments under the non-binding proposal. Rhythm shares closed up 28% at $110.68 on Nov. 4, after the news spread. The company had a market capitalization of about $7.64 billion at the close. The closing price was below the proposed ceiling, while the terms of the consideration and the likelihood of completing the acquisition remained unresolved in the report.
Reuters said the potential acquisition would be made through Alexion, AstraZeneca's rare-disease unit. AstraZeneca acquired Alexion in 2021 for $39 billion, according to the report. Rhythm is developing treatments for rare neuroendocrine disorders, as well as rare metabolic diseases and severe obesity. In March, the U.S. Food and Drug Administration expanded the use of Rhythm's Imcivree treatment for a rare form of obesity caused by brain damage. Reuters reported that the treatment became the first approved in the United States for this condition.
The potential deal puts Rhythm's assets in the context of an obesity-drug market that could exceed $100 billion in annual sales over the next decade, according to the Reuters report. The report linked that outlook to demand for treatments from Novo Nordisk and Eli Lilly. Jefferies analyst Michael Leuchten said AstraZeneca's search for rare-disease assets that fit its existing business was "a perfectly logical approach in our view." This comes as AstraZeneca said its total revenue rose 6% in the first half of 2026 at constant exchange rates. The company added that double-digit growth in oncology and rare diseases offset pressure from the loss of Farxiga exclusivity in the United States and volume-based purchasing in China.
AstraZeneca is targeting total revenue of $80 billion in 2030, according to its first-half and second-quarter 2026 results statement. The ambition accompanies the company's effort to expand its business in oncology and rare diseases, as reported in its results. Reuters did not report a definitive agreement between the parties or a timeline for completing the deal. It said an AstraZeneca spokesperson declined to comment on the offer. Rhythm representatives did not respond to a request for comment, according to the report.