HomeIndustriesAmgen to Purchase ChemoCentryx in $3.7 Billion Deal

Amgen to Purchase ChemoCentryx in $3.7 Billion Deal

Biopharmaceutical company Amgen Inc has confirmed that it will purchase ChemoCentryx Inc for $3.7 billion. While ChemoCentryx shares are down 34% this year, the announcement saw them double in value to $51.40 before trading commenced. To complete the deal, Amgen will be required to pay $52 per share in cash; a premium of nearly 116% on ChemoCentryx’s stock’s closing price on Wednesday.

By acquiring ChemoCentryx, Amgen will be looking to add the company’s newly approved anti-inflammation treatment to its product portfolio. While Amgen’s arthritis drug, Enbrel, has been a top seller, it now faces stiff competition from new rivals that have recently entered the market. Furthermore, the drug’s patent is set to expire in 2029.

One of the main targets for Amgen was ChemoCentryx’s Tavneos, which was approved late last year. Used to treat a rare form of blood vessel inflammation, Tavneos raked in $5.4 million in sales during the first quarter following its launch.

In addition to Tavneos, there are three drugs that are currently going through early-stage trials that are to be used to treat inflammatory diseases, as well as a cancer drug. Analysts expect the company’s sales to exceed $1 billion by 2027.

Activist Investor Elliott Management Won’t Pursue Changes on Salesforce’s Board

Improved results in the Q4 earnings report have allowed Salesforce to keep activist investor Elliott Management from pursuing changes on the company’s Board of...

First Citizens Bancshares Makes a Deal to Acquire Collapsed Silicon Valley Bank

The Federal Deposit Insurance Corporation (FDIC) has found a taker for the collapsed Silicon Valley Bank (SVB). On Monday, FDIC confirmed that North Carolina-based...

Banking Sector Stress Could Lead To Tighter Lending; ECB, Fed Officials Claim

Uncertainty across the banking sector is being closely monitored due to the potential for a credit crunch, a Federal Reserve official divulged on Monday....