Under the agreement, AstraZeneca will acquire CinCor for a price of $26 per share ($1.3 billion) at closing. The deal also includes a contingent right worth $10 per share in cash, payable if the Baxdrostat product passes clinical trials and is approved by regulatory authorities.

AstraZeneca will also assume CinCor's substantial cash reserves of approximately US$500 million to help fund the development of Baxdrostat. Baxdrostat is a drug designed to reduce aldosterone levels without affecting cortisol levels. In a Phase 2 clinical trial, it demonstrated a statistically significant reduction in systolic blood pressure in patients with treatment-resistant hypertension. Excessive aldosterone levels are associated with hypertension and several cardiorenal diseases, including chronic kidney disease and coronary artery disease. AstraZeneca also said Baxdrostat could be combined with Farxiga, its drug for chronic kidney disease.

Analysts are predicting a year full of M&A deals, with big drugmakers set to benefit most from a drop in the valuations of biotech companies. Paris-based pharmaceutical company Ipsen, for example, also announced today that it is buying Albireo, a U.S.-listed company developing drugs to treat rare liver diseases, for nearly $1 billion.