BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) shares rose 4.7% in premarket trading Tuesday after the company announced an agreement to acquire Alesta Therapeutics, expanding its pipeline of treatments for rare genetic diseases.
Under the terms of the deal, BioMarin will pay $275 million upfront, with up to an additional $215 million tied to specified development and regulatory milestones. The transaction gives BioMarin control of ALE1, Alesta’s lead clinical-stage program and a potential oral treatment for hypophosphatasia, or HPP.
ALE1 is an orally active small molecule being developed for HPP, a rare inherited bone disorder caused by mutations in the ALPL gene. The candidate is currently in a Phase 1/2a clinical trial evaluating safety, tolerability, and pharmacokinetic and pharmacodynamic characteristics in healthy volunteers and adults diagnosed with HPP. If successfully developed and approved, ALE1 could become the first oral therapy for the condition, offering patients an alternative to existing injectable treatments.
HPP interferes with the mineralization of bones and teeth, potentially leading to repeated fractures and premature tooth loss. Adults with the disease may also experience muscle weakness, fatigue, and pain. More than 9,000 people in the United States have been diagnosed with HPP, although the condition is believed to remain underdiagnosed.
As part of the transaction structure, Alesta will transfer all assets unrelated to ALE1 into a newly created company before completion of the acquisition. Alesta employees will move to that spinout business, meaning no members of the Alesta workforce will transfer to BioMarin under the agreement. The boards of directors of both companies have approved the transaction.
BioMarin plans to fund the $275 million upfront payment using cash already on its balance sheet. The acquisition is expected to close during the current quarter, subject to customary closing conditions. BioMarin intends to issue updated full-year 2026 guidance once the transaction has been completed. Excluding the upfront acquisition payment, the company expects the deal to have a modestly dilutive effect on 2026 financial results.
The positive premarket reaction suggests investors are focusing on the strategic potential of ALE1 and its possible role in strengthening BioMarin’s rare-disease portfolio.
