Monday, August 26, 2019

Amgen Acquires Otezla for $13.4 Billion

Thousand Oaks-based Amgen announced this morning that it is acquiring Otezla, the anti-inflammatory drug used to treat psoriasis and psoriatic arthritis, which is currently owned by Celgene Corporation, in a deal worth $13.4 billion in cash. According to Amgen, the deal will help strengthen its inflammation portfolio, and will be worth approximately $11.2 billion net of anticipated future cash tax benefits. According to Amgen, the deal is part of Celgene's previously announced merger with Bristol-Myers Squibb Company. Amgen said the acquisition will accelerate both its near- and long-term revenue growth. Otezla had $1.6 billion in sales in 2018. Amgen said it expects low double-digit sales growth for Otezla over the next five years. Otezla is typically prescribed with patients with moderate-to-severe psoriasis.