![]() ![]() The biggest of those drugs, Tepezza, accounted for about $1.5 billion in sales in the first nine months of this year. Three of its current drugs combined for $2 billion in sales in the first nine months of 2022, Bradway said in Monday’s conference call. ![]() Horizon has a few drugs already on the market for rare autoimmune and inflammatory diseases, and more in its research pipeline. ![]() and European regulators.Īmgen executives said Monday they do not expect any major regulatory hurdles and expect the deal to close sometime in the first half of 2023. It still needs a full shareholder vote, as well as approval by U.S. The boards of directors of both companies have approved the deal, Amgen said. “Acquiring a company like Horizon Therapeutics fills a substantial part of that void,” Syed said, with Horizon expected to contribute at least $5 billion to Amgen’s revenue.Īmgen’s offer is all cash, and the company said in Monday’s news release that it had already secured $28.5 billion in financing from Bank of America, Citibank and other lenders. Amgen is likely to keep making smaller acquisitions, he said, because it needs to make up for the revenue it is likely to lose as its current blockbuster drugs get older and lose their patent protections.Īmgen’s revenue in 2021 was just under $26 billion, and Syed said about 40% of that is “exposed,” which means it comes from products that are scheduled to lose patent protections by 2030. Syed said this deal likely represents the peak of Amgen’s current acquisition spree, since any company is unlikely to take on two deals of such size in quick succession. Though the price is nearly 50% more than Horizon’s recent stock value, it is still a little below where the company was trading in April, he pointed out, and the value is in line with other recent mergers in the industry. Salim Syed, an analyst at the investment bank Mizuho Americas who covers Amgen and other biotechnology companies, said he thinks the deal makes sense for Amgen. “We've admired Horizon's success for some time and we've studied their business closely through time as well, and when presented with this opportunity we were prepared to move quickly,” Bradway said. In a conference call Monday morning, Amgen CEO Robert Bradway said the opportunity to buy Horizon was “compelling both strategically and financially.” ![]() 29, before Horizon disclosed it was the target of potential acquisition offers by Amgen and two other pharmaceutical companies. It also represents a premium of nearly 48% over Horizon’s $78.76 closing price on Nov. That price is almost 20% above Horizon’s closing price on Friday, the last trading day before the deal was announced. It has been on bit of a buying spree in recent years, with four other acquisitions in 20, but the Horizon deal is by far the largest.Īmgen will pay $116.50 per share for Horizon, which is based in Dublin, Ireland, but has a number of offices in the United States and trades on the Nasdaq stock exchange. Amgen announced its biggest acquisition ever on Monday, and the biggest deal this year in the health care and pharmaceutical industries: a $27.8 billion cash purchase of Horizon Therapeutics, a biotechnology company that has developed a number of treatments for rare diseases.Īmgen is based in Thousand Oaks and is one of Ventura County’s biggest private employers, as well as one of the world’s largest biotech companies. ![]()
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