Amgen was having a relatively quiet year on the mergers and acquisitions front, at least until Aug. 4, when the Thousand Oaks-based biotech firm announced it will purchase ChemoCentryx for nearly $3.7 billion.
ChemoCentryx is a Silicon Valley biopharmaceutical company focused on orally administered therapeutics to treat autoimmune diseases, inflammatory disorders and cancer. It has one approved drug, Tavneos, a treatment for serious and rare autoimmune disorders, which topped $5 million in sales in its first quarter on the market.
Amgen will pay $52 per share for ChemoCentryx, which trades publicly on the Nasdaq. Shares of the company closed at $24.11 on Aug. 3, which means Amgen is paying about a 110% premium. ChemoCentryx shares more than doubled after the deal was announced and were trading at a little above $50 by the afternoon of Aug. 4.
Shares of Amgen were flat after the deal was announced, opening at $247 on Aug. 4 and trading within a dollar of that amount for most of the day.
“The acquisition of ChemoCentryx represents a compelling opportunity for Amgen to add to our decades-long leadership in inflammation and nephrology with Tavneos, a transformative, first-in-class treatment for ANCA-associated vasculitis,” Robert A. Bradway, chairman and CEO at Amgen, said in a news release announcing the deal. “We are excited to join in the Tavneos launch and help many more patients with this serious and sometimes life-threatening disease for which there remains significant unmet medical need.”
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