[Ip-health] FT: Amgen to buy Celgene’s Otezla in $13.4bn deal D

Thiru Balasubramaniam thiru at keionline.org
Mon Aug 26 05:14:56 PDT 2019


Amgen to buy Celgene’s Otezla in $13.4bn deal
Deal to help advance Bristol-Myers Squibb’s $90bn takeover of rival biotech
giant Celgene

Bristol-Myers Squibb has announced that Celgene will sell the global rights
to Otezla, a medicine for patients with psoriasis and psoriatic arthritis,
to rival Amgen for $13.4bn, in the latest “megadeal” in the pharmaceutical
sector this year.

The sale of Otezla is part of an effort by Bristol-Myers to divest assets
to win regulatory approval for its previously agreed $90bn takeover of
rival biotech giant Celgene, the company said on Monday.

“This agreement represents an important step toward completing our pending
merger with Celgene,” said Giovanni Caforio, chairman and chief executive
of Bristol-Myers.

Pharmaceutical and healthcare companies have been on a deal frenzy this
year, partly driven by the desire to sell non-core assets or buy innovative
medicines as their own drugs are close to losing patent protection. Major
pharmaceutical groups are focusing on becoming one of the top three players
in whatever category they operate.

So far this year, more than $700bn worth of transactions have been agreed
in the pharmaceutical and healthcare sector, according to Refinitiv,
including AbbVie’s decision to buy the maker of Botox, Allergan for $63bn,
Pfizer’s sale of it’s off-patent drug business to Mylan for $9.5bn, and
Roche’s $4.8bn takeover of gene therapy company Spark Therapeutics.
Bristol-Myers acquisition of Celgene is the largest in the largest pharma
deal of the year and was announced in January.

Bristol-Myers also announced that it plans to buy back $7bn worth of
shares, up from the previously planned $5bn share repurchase. The move
follows strong business performance and encouraging clinical developments
across the pipeline of its portfolios.

Under the terms of the agreement, Amgen will acquire Otezla and its related
intellectual property, plus any other assets and liabilities connected to
the company. The deal will also impact Celgene employees who produce Otezla
as they will transfer to Amgen.

The deal, which is expected to close by the end of 2019, will help
Bristol-Myers deleverage and maintain its investment grade rating.

Thiru Balasubramaniam
Geneva Representative
Knowledge Ecology International
41 22 791 6727
thiru at keionline.org

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