Amgen Completes $13.4-Billion Acquisition of Celgene’s OtezlaBy
Amgen has completed its $13.4-billion acquisition of Celgene’s Otezla (apremilast), a drug for treating moderate-to-severe plaque psoriasis and psoriatic arthritis. Celgene had divested the drug in connection with its $74-billion acquisition by Bristol-Myers Squibb, which was completed earlier this month (November 2019). Celgene divested Otezla as part of a condition for US Federal Trade Commission approval of the deal.
Amgen acquired Otezla, along with certain related assets and liabilities, for $13.4 billion in cash. Amgen projects the transaction price will balance to be approximately $11.2 billion, net of the present value of $2.2 billion in anticipated future cash tax benefits.
Otezla is an oral small-molecule indicated in the US for treating: patients with moderate-to-severe plaque psoriasis who are candidates for phototherapy or systemic therapy; adult patients with active psoriatic arthritis; and adult patients with oral ulcers associated with Behçet’s Disease. Otezla is approved in more than 50 markets outside the US, including the European Union and Japan.
Amgen says the acquisition fits into several strategic objectives: (1) strong strategic fit with Amgen’s expertise in moderate-to-severe plaque psoriasis and active psoriatic arthritis; (2) a differentiated, oral therapy complementary to Amgen’s existing inflammation franchise of innovative biologics and biosimilar products; (3) at least low double-digit percentage Otezla sales growth, on average, anticipated over the next five years; (4) expected acceleration of Amgen’s near- and long-term revenue growth; and (5) worldwide rights which fit well with Amgen’s international presence and global expansion objectives.
With the closing of the Otezla acquisition, Amgen is updating its overall 2019 guidance. For the full year 2019, the company now expects total revenues in the range of $23.1 billion to $23.3 billion. Previously, the company expected total revenues in the range of $22.8 billion to $23.billion.