This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Amgen-Immunex Deal Rumored

Amgen (AMGN) is reportedly pursuing a deal to acquire Immunex (IMNX) for as much as $18 billion in cash and stock, according to media reports.

Talk of a deal between the two biotech firms hit Wall Street early Thursday morning, driving shares of Immunex up about 10%. The rumors were then given more credence by a later CNBC report that says the companies are in advanced merger talks. Amgen is reportedly offering to buy Immunex for a price in the low $30 range. One possible snag: American Home Products (AHP) owns 41% of Immunex and if reports are correct, may have marketing rights to future drugs.

Shares of Immunex jumped $3.04, or 12%, to $27.49 a share in recent trading. Amgen is off $2.75, or 4%, to $61.65.

The deal, if consummated, is risky for Amgen because it would be dilutive to earnings over the next few years, which would force it to restate current growth estimates. The big attraction at Immunex is its rheumatoid arthritis drug, Enbrel, which is expected to rack up 2001 sales of about $750 million. But Enbrel sales growth has been constrained by a lack of the drug's supply, and there is significant competition on the horizon from rival drugs. Immunex also has a weak late-stage drug pipeline.

On the positive side, Amgen recently received Food and Drug Administration approval for its own rheumatoid arthritis drug, dubbed Kineret. The company might be betting that it can create significant efficiencies by bringing the two drugs under the same roof.

Neither company is commenting on the merger rumors.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs