Amgen (AMGN) - Get Report on Monday said it would acquire the global rights to Celgene's (CELG) - Get Report highly successful oral psoriasis treatment Otezla for $13.4 billion in cash, paving the way for Bristol Myers-Squibb to compete its acquisition of Celgene.
"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," Amgen CEO Robert Bradway said in a statement.
Otezla is approved for three types of treatments in the U.S. - two related to psoriasis and one for oral ulcers associated with Behçet's Disease. It is also approved in more than 50 markets outside the U.S., including the EU and Japan, and has patent exclusivity through at least 2028 in the U.S.
Sales of Otezla in 2018 were $1.6 billion.
Amgen said Monday the deal "The transaction is expected to contribute to Amgen's near- and long-term revenue growth rate and will be immediately accretive from close to non-GAAP earnings per share growth, with acceleration thereafter."
Bristol Myers-Squibb (BMY) - Get Report in January said it planned to acquire Celgene for $74 billion. As part of the agreement, Bristol-Myers and Celgene agreed to shed Otezla to satisfy regulatory concerns. Bristol-Myers said it expects to complete the acquisition of Celgene by the end of the year.
Amgen shares fell 1.16% to $196.77 in premarket trading, Celgene rose 3.73% to $97.50, and Bristol-Myers was up 5.2% to $49.
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