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Home Market News Amgen to acquire only oral, non-biologic treatment for psoriasis and psoriatic arthritis
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23 Aug 2019

Amgen to acquire only oral, non-biologic treatment for psoriasis and psoriatic arthritis

Company acquires leading immunology drug Otezla from Celgene for $13.4 billion.

Amgen has entered into an agreement with Celgene in connection with its previously announced merger with Bristol-Myers Squibb (BMS) 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, or approximately $11.2 billion, net of the present value of $2.2 billion in anticipated future cash tax benefits.

Amgen believes that the acquisition of Otezla offers many benefits including the following:

  • A strong strategic fit with Amgen's long-standing expertise in psoriasis and inflammation
  • A differentiated, oral therapy complementary to Amgen's existing inflammation franchise of innovative biologics and biosimilar products
  • At least low double-digit Otezla sales growth, on average, over the next 5 years
  • Acceleration of Amgen's near- and long-term revenue growth
  • Immediate non-GAAP EPS accretion
  • Intellectual Property exclusivity through at least 2028 in the US
  • Worldwide rights which fit well with Amgen's international presence and global expansion objectives
  • Support of increased R&D investment in 2020 to advance Amgen's innovative pipeline of first-in-class molecules
  • No interruption in deployment of Amgen's capital allocation priorities.

    • "The acquisition of Otezla offers a unique opportunity for Amgen to provide patients an innovative oral therapy for psoriasis and psoriatic arthritis that fits squarely within our portfolio and complements our Enbrel and AMGEVITA brands," said Robert A. Bradway, chairman and chief executive officer at Amgen. "We will take advantage of our 20 years of experience in inflammatory disease to realize the full global potential of Otezla as an affordable option for patients with these serious, chronic inflammatory conditions."

    Otezla is the leading treatment in the post-topical, pre-biologic segment in its approved indications. Otezla is currently approved for three indications in the US — the treatment of patients with moderate-to-severe plaque psoriasis who are candidates for phototherapy or systemic therapy; adult patients with active psoriatic arthritis; and adult patients with oral ulcers associated with Behçet's Disease. Otezla is approved in more than 50 markets outside the US, including the European Union and Japan, and has patent exclusivity through at least 2028 in the US.

    Sales of Otezla in 2018 were $1.6 billion driven by strong volume growth. Amgen believes there is a significant opportunity to grow Otezla through global expansion and new indications, with expectations for Otezla to realize at least low double-digit sales growth, on average, over the next 5 years.

    "Otezla represents an exciting opportunity to strengthen Amgen's presence in inflammation and continue Amgen's geographic expansion," said Bradway. "We are excited about the opportunity that Otezla represents for Amgen, for our shareholders, and for patients worldwide, and we look forward to welcoming those staff members who support Otezla to the Amgen family."

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