NEW YORK, UNITED STATES – The US biopharmaceutical firm Amgen said Monday it has reached agreement to acquire Horizon Therapeutics, which specializes in medicine for rare and auto-immune diseases, for US$27.8 billion.
This is the biggest acquisition of the year in the health sector.
California-based Amgen said it will pay cash to the tune of $116.50 a share in Horizon Therapeutics, a 20 percent premium over its closing price Friday on Wall Street.
Amgen said it will finance the deal with a $28.5 billion loan from a bank.
The deal is subject to approval by US regulators and if all goes well it should be concluded in the first half of 2023, Amgen said.
Founded in 2005, Horizon Therapeutics develops and markets drugs for rare, auto-immune and inflammatory illnesses.
It is best known for making Tepezza, which is used to treat thyroid eye disease.
Shares in Horizon Therapeutics, which has its head office in Ireland but is listed on the Nasdaq index, shot up 15 percent in electronic trading prior to the opening bell on Monday.
Shares in Amgen were down 2.6 percent.
Responding to an article in The Wall Street Journal, Horizon Therapeutics said last month it was in preliminary talks with Amgen but also with Johnson & Johnson and the French company Sanofi.
“The acquisition of Horizon is a compelling opportunity for Amgen and one that is consistent with our strategy of delivering long-term growth by providing innovative medicines that address the needs of patients who suffer from serious diseases,” Amgen CEO Robert Bradway said.
