Vertex to buy Crinetics for $10 billion, expanding into endocrine disease drugs

Vertex announced an agreement to acquire Crinetics Pharmaceuticals for $10 billion in cash, paying $85 per share.

The purchase brings two recently launched drugs for a rare hormonal disorder into Vertex’s pipeline, marking its entry into endocrine disease therapeutics.

Vertex projects the drugs could eventually generate more than $5 billion in annual revenue, but the 102% premium price has sparked debate among analysts and investors.

The acquisition, funded with cash on hand and debt, is expected to close in the third quarter and represents the company’s largest deal as it seeks to diversify beyond its cystic fibrosis franchise that already yields over $10 billion annually.