Sector News

FT: Amgen in the hunt for a $10B biotech buyout

November 9, 2015
Life sciences

Amgen is jumping back into the M&A game. And it’s looking for another Onyx-sized deal that can deliver a late-stage drug ready to be hustled across the finish line.

The Financial Times reported this morning that Amgen’s management team has been briefing investors about its plans to buy another biotech for about $10 billion. That’s what the big biotech paid for Onyx, which netted the cancer drug Kyprolis, and it’s in the same ballpark as Celgene’s $7.2 billion deal for Receptos.

That Receptos buyout inspired a fresh surge for Celgene’s share price, pushing analysts to join in the chorus for more such deals from a lengthy lineup of big biotechs. Gilead as well as Biogen have been quietly encouraging about buyout speculation, while Pfizer recently stepped up with a new megamerger pitch for Allergan.

Buyouts have long been seen as a quick way to build pipelines, but some of the biggest players have also been forced to pause as they consider the high prices that biotechs can fetch. Some of the froth has been taken out of biotech market valuations in recent weeks, though, which may make the sector more appealing for top dealmakers.

Initially, Amgen had promised to leave Onyx’s R&D ops intact in its campus. But earlier this year the company decided to finally complete the process and absorb the company as Amgen pursued a company-wide reorganization that extended throughout the country, forcing the closure of a research center in Seattle.

Amgen isn’t talking targets, according the the FT, but you can expect to hear plenty of speculation about potential deals in the weeks ahead.

By John Carroll

Source: Fierce Biotech

comments closed

Related News

September 17, 2022

Novo Nordisk partners with Microsoft for AI-driven drug discovery

Life sciences

Novo Nordisk has signed a new strategic partnership with Microsoft to expedite the discovery and development of drugs leveraging big data and artificial intelligence (AI). Under the deal, Microsoft’s computational services, Cloud and artificial intelligence (AI) will be merged with the drug discovery, development and data science expertise of Novo Nordisk.

September 17, 2022

Bayer’s hunt for a new CEO is on, suggesting Werner Baumann could be headed for an early exit: report

Life sciences

Following years of push-and-pull over the German conglomerate’s top post, Bayer has quietly started a hunt for Baumann’s successor, Bloomberg News reported Tuesday, citing people close to the matter. The new CEO search may portend an early departure for Baumann, whose contract with Bayer isn’t set to expire until April 2024.

September 17, 2022

Bluebird CFO resigns ahead of gene therapy launch

Life sciences

Bluebird bio on Monday said its chief strategy and financial officer, Jason Cole, will leave the company this fall, marking the second time in less than a year the cash-strapped gene therapy developer will replace its top financial executive.