Amgen closes the purchase of the pharmaceutical company Horizon for 25,000 million | companies

The American biotech Amgen has reached an agreement to buy Horizon Therapeutics for 26,400 million dollars (25,000 million euros) in cash, as reported this Monday in a statement. With the operation, Amgen strengthens its development of treatments for autoimmune diseases.

Amgen will pay $116.50 per share in cash, according to the statement from both companies, representing a premium of around 48% since Horizon Therapeutics disclosed on November 29 that it was in initial talks with three suitors (last day before to be informed of the negotiations). It is also a premium of 19.7% compared to the price registered last Friday at the close of the market.

With Horizon, Amgen takes over a company that gets nearly half of its $3.6 billion in annual sales from Tepezza, a treatment for an autoimmune disease called thyroid eye. Other important medicines are Krystexxa, for chronic gout, and Ravicti, against urea disorders. Horizon’s portfolio complements Amgen’s expertise in biotech developments and inflammatory diseases.

If the shares still pending distribution are taken into account, the total price of the acquisition amounts to 27,800 million (26,321 million euros), while the company value (including net debt) has stood at 28,300 million (26,795 million of euros).

“We have admired Horizon’s success for some time and have also closely studied its business,” said Robert Bradway, Amgen’s CEO. “And when this opportunity presented itself, we were prepared to move quickly.” Sanofi dropped out of the race for Horizon on Sunday, claiming the price has risen too high, after a Johnson & Johnson subsidiary did the same thing earlier in the month. Listed on the Nasdaq market, Horizon is headquartered in Dublin, with US operations in Deerfield, Illinois, and Rockville, Maryland.

Following the attention paid to Covid-19, Big Pharma is resuming its search for innovative therapies, especially those that treat rare diseases and cancer. The deal with Horizon is the biggest pharmaceutical deal since AstraZeneca bought Alexion Pharmaceuticals for $39 billion in 2020.

“The acquisition of Horizon is a compelling opportunity for Amgen and is consistent with our strategy of achieving long-term growth by providing innovative medicines that address the needs of patients suffering from serious illnesses,” added Bradway.

In order to agree on this operation, Amgen has reached a bridge financing agreement with Citibank and Bank of America, which will lend the company 28,500 million dollars (26,984 million euros) in a syndicated manner.

Thousand Oaks, California-based Amgen has far outperformed its rivals this year, with its shares up 24% through Friday and has a market value of about $149 billion. Last month, Amgen’s tallies beat analyst estimates as 11 drugs posted record quarterly sales and the company kept operating expenses in check.

Amgen said it expects the Horizon purchase to increase earnings per share starting in 2024. It anticipates pre-tax savings of $500 million per year by the end of the third year since completion.

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