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World's top biotech company Amgen in $2.2 billion merger

Amgen, the world's largest biotechnology company, and Abgenix, a company specializing in the discovery, development and manufacture of human therapeutic antibodies, today announced that they have signed a definitive merger agreement under which Amgen will acquire Abgenix for approximately $2.2 billion in cash plus the assumption of debt. Under the terms of the agreement, shareholders of Abgenix will receive $22.50 in cash per common share.

Last week, it was reported that Amgen is poised to agree an investment of $1.54 billion in a manufacturing facility in Cork, Ireland. Amgen was listed 35th in the 2004 ranking of the 500 largest North American companies who have performed best for investors

The acquisition of Abgenix provides Amgen with full ownership of one of its most important advanced pipeline products, ‘panitumumab’. Working closely with Abgenix under a co-development agreement that Amgen assumed as a result of its acquisition of Immunex Corporation in 2002, Amgen has led the development and commercialization strategy for ‘panitumumab’. The acquisition provides additional value to Amgen by eliminating a tiered royalty that Amgen would have paid to Abgenix on future sales of denosumab (formerly AMG 162), which was created using Abgenix's XenoMouse(R) antibody technology.

Amgen and Abgenix believe ‘panitumumab’ has substantial commercial opportunity, including potential in the first-line treatment of metastatic colorectal cancer (CRC) in combination with other agents, including anti-angiogenic therapies. Amgen believes that potential peak worldwide sales for ‘panitumumab’ could reach $2 billion or more, assuming success of panitumumab in several clinical trials evaluating multiple lines of therapy in colorectal cancer and head and neck cancer.

Under the terms of the agreement, which has been unanimously approved by the Boards of Directors of both companies, Amgen will pay shareholders of Abgenix $22.50 in cash per common share for a total value of approximately $2.2 billion and will assume Abgenix outstanding debt. The transaction is expected to be completed by the end of the first quarter of 2006.

(www.finfacts.com)

 
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