EXCLUSIVE: Relypsa Being Evaluated By 3-4 Potential Acquirers; Sanofi Seen As 'Natural Buyer'

Relypsa Inc RLYP shares are up more than 15 percent on Friday afternoon after unconfirmed reports that Merck & Co., Inc. MRK could make a bid for the $1.07 billion bio therapeutic company. A source familiar with the matter told Benzinga Merck is not involved with a bid, but that 3 to 4 companies are evaluating Relypsa.

According to the source, the evaluation process is in its early stages and no developments are expected until at least 2016.

Sanofi Seen As 'Natural Buyer'

In a conversation with Benzinga, Wedbush analyst Liana Moussatos said Sanofi SA (ADR) SNY is a "natural buyer" of Relypsa. In August of this year, Relypsa entered into a two-year detailing and distribution agreement with Sanofi for its hyperkalemia treatment, Veltassa, which received FDA approval in late October.

Veltassa is expected to be available to doctors and patients in January 2016 and is the first new treatment for Hyperkalemia in over 50 years.

Billion-Dollar Potential

In a note published shortly after the drug gained FDA approval, Moussatos said she expected Veltassa to have a successful launch to start the New Year, eventually resulting in peak annual sales of more than $1 billion in the U.S. alone. The analyst projected MAA submission would be made in the first half of 2015, followed by a potential launch in the European Union by the middle of 2017.

Moussatos' projections show the drug could reach more than 3 million patients facing moderate to severe hyperkalemia and over 13 million suffering from a milder case of the condition.

The analyst holds a $75 12-month price target on Relypsa. Shares currently trade near the $26 mark.

Jake Mann contributed to this report.