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Amgen to acquire Otezla, pending Celgene merger
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Amgen has entered into an agreement with Celgene to acquire worldwide rights to Otezla 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.
The acquisition is contingent upon Bristol-Myers Squibb closing the pending merger with Celgene, which is expected by the end of 2019; Bristol-Myers Squibb entering into a consent decree with the FTC regarding the merger; and the satisfaction of other customary closing conditions, according to a press release.
Otezla (apremilast, Celgene) is approved for the treatment of moderate to severe plaque psoriasis in patients 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. Patent exclusivity in the U.S. remains through at least 2028, according to the release.
Otezla is approved in more than 50 markets outside the U.S., including the E.U. and Japan.
The acquisition aligns with Amgen’s focus on treatments that deliver sustained, long-term volume growth, according to the company. Amgen expects, on average, at least double-digit sales growth from Otezla over the next 5 years.
Enbrel (etanercept, Amgen) and Otezla are complementary, according to the release. In psoriatic arthritis, Otezla is positioned for use in patients early in the disease and/or with moderate joint involvement. Studies are underway exploring new indications for Otezla, such as in mild to moderate psoriasis.
Amgen plans to finance the transaction with current balance sheet cash and expects to retain its investment grade credit rating, according to the release.