Amgen Agreement with Celgene for Otezla®
In the News
Amgen (AMGN) entered into an agreement with Celgene (CELG) 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.Amgen cited the benefits of this agreement as follows:
- A strong fit with Amgen’s long-standing expertise in inflammation and psoriasis.
- A differential oral therapy complementary to Amgen’s existing inflammation franchise of innovative biologics and biosimilar products.
- At least two double-digit Otezla sales growth over the next five years at least.
- Near- and long-term revenue growth.
- Intellectual property exclusivity through at least 2028 in the U.S.
- Support of increased R&D investment in 2020 to advance Amgen’s innovative pipeline of first- in-class molecules.
- No interruption in the development of Amgen’s capital allocation priorities.
Prohost Observations
Amgen’s acquisition of Otezla entices us to accumulate AMGN after some robots tried to cause an irrelevant selloff of the stock. Bristol Myers-Squibb (BMY) will definitely benefit from this agreement as the firm is in the process of acquiring Celgene. The Stock Market Opened Higher Today.To read more about these firms please run a search from our website by clicking here.
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