Amgen to acquire Otezla from Celgene for $13.4 billion

Amgen has announced that it has entered into an agreement with Celgene Corporation in connection with its previously announced merger with Bristol-Myers Squibb Company to acquire worldwide rights to Otezla (apremilast), the only oral, non-biologic treatment for psoriasis and psoriatic arthritis, and certain related assets and liabilities, for $13.4 billion in cash, or approximately $11.2 billion, net of the present value of $2.2 billion in anticipated future cash tax benefits.

Amgen believes that the acquisition of Otezla offers many benefits including: A strong strategic fit with Amgen's long-standing expertise in psoriasis and inflammation. A differentiated, oral therapy complementary to Amgen's existing inflammation franchise of innovative biologics and biosimilar products. At least low double-digit Otezla sales growth, on average, over the next five years. Acceleration of Amgen's near- and long-term revenue growth. Immediate non-GAAP EPS accretion. Intellectual Property exclusivity through at least 2028 in the U.S. Worldwide rights which fit well with Amgen's international presence and global expansion objectives. Support of increased R&D investment in 2020 to advance Amgen's innovative pipeline of first-in-class molecules No interruption in deployment of Amgen's capital allocation priorities.

Comment:Sales of Otezla in 2018 were $1.6 billion driven by strong volume growth.