Amgen inks deal with Celgene for psoriasis drug Otezla at USD 13.4B
Category: #headline  By Akshay Kedari  Date: 2019-08-27
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Amgen inks deal with Celgene for psoriasis drug Otezla at USD 13.4B
  • The purchase of Otezla is expected to offer growth for Amgen escalating its shares over 3% on Monday.
     
  • The deal would clear the path for Bristol- Myers Squibb to move ahead with USD 74 billion deal for Celgene.

California based Amgen Incorporation reportedly announced buying Celgenes psoriasis pill Otezla at a deal valued at USD 13.4 billion in order to close the planned merger of Celgene with Bristol-Myers Squibb. According to industry analysts the valued deal is higher than expected.

Post the announcement of the deal, the shares of Amgen rose to over 3% while those of Bristol-Myers and Celgene also escalated to over 3%.

For the uninitiated, Otezla is a drug which has been manufactured to treat several inflammatory diseases like psoriasis and psoriatic arthritis. As per trusted reports, the total sales for 2018 summed up to USD 1.6 billion with a growth of 26 per cent yearly.

Reportedly, New York-based Bristol-Myers recently stated that it would trade Otezla to alleviate concerns raised by the United States Federal Trade Commission accounting to a competing treatment which is being developed. It has been claimed that the company at a point were expecting Otezla to be brought up over USD 8 billion to USD 10 billion.

Amgen in a statement stated that the acquisition of Otezla offers an exclusive opportunity for the company to offer the patients an innovative oral treatment for psoriasis and psoriatic arthritis that completely integrates with the company’s portfolio and complements its various brands.

A statement from Bristol-Myers reported that there has been a significant interest observed from various potential buyers since the initiation of the deal or during the process.

As per authentic sources, the buyer company Amgen foresees the Otezla’s sales to grow in the low-double digits over the following 5 years. Furthermore, the company also expects the drug’s patents to protect its individuality in the United States until 2028.

For the records, Amgen was formed in 1980 and is an American multinational biopharmaceutical company focused on providing a healthcare business based on recombinant DNA technology.

Source credit: https://www.reuters.com/article/us-bristol-myers-divestiture-amgen/amgen-to-buy-celgene-psoriasis-drug-otezla-for-13-4-billion-idUSKCN1VG102

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Akshay Kedari    

Akshay Kedari

Akshay holds a Bachelor’s degree in computer engineering. Despite having a penchant for software development and the like, Akshay took to writing as a career owing to his passion for the field. Presently, Akshay writes articles for itresearchbrief.com and a few oth...

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