American biopharmaceutical company Amgen is acquiring Horizon Therapeutics, a biopharmaceutical company based in Dublin, for $27.8 billion.
Amgen’s newly created subsidiary, Pillartree Limited, will acquire Horizon Therapeutics for $116.50 per share in cash. That’s a premium of 47.9% above the closing price of $78.76 per share on Nov. 29, 2022, and a premium of 19.7% above the closing price of $97.29 on Dec. 9, 2022.
The deal brings together Amgen––which is focused on six therapeutic areas: cardiovascular disease, oncology, bone health, neuroscience, nephrology and inflammation––and Horizon, which develops medicines for rare, autoimmune and severe inflammatory diseases. It is one of the biggest healthcare deals announced in 2022.
"In nearly 15 years, we have built one of the fastest growing and most respected companies in the biotechnology industry from the ground up,” President and CEO of Horizon Therapeutics Tim Walbert said in a statement. “We have accomplished a tremendous amount for patients, their families and our customers, and created significant value for shareholders. These accomplishments are all rooted in our employees' deep commitment, dedication and personal passion for those impacted by rare, autoimmune and severe inflammatory diseases. Amgen is aligned with that commitment and passion and will continue to [maximize] the value of the current portfolio and pipeline and accelerate the ability to reach more patients globally."
According to Amgen, the deal will strengthen its portfolio of innovative therapeutics with complementary medicines from Horizon that address the needs of patients with rare diseases. In addition, the two companies together will utilize Amgen’s research and development, process development and global manufacturing expertise in biologic medicines to benefit Horizon's approved medicines and potential new medicines.
The deal will generate cash flow of $10 billion combined over twelve months through Q3 2022, the announcement said.
"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 Chairman and CEO Robert A. Bradway said in a statement. “Amgen's decades of leadership in inflammation and nephrology, combined with our global presence and world-class biologics capabilities, will enable us to reach many more patients with first-in-class medicines like TEPEZZA, KRYSTEXXA and UPLIZNA. Additionally, the potential new medicines in Horizon's pipeline strongly complement our own R&D portfolio. The acquisition of Horizon will drive growth in Amgen's revenue and non-GAAP EPS and is expected to be accretive from 2024."
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."