Amgen to Acquire Immunex for $16 Billion

The world's largest biotech company is expanding.
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Following a week of press speculation,

Amgen

(AMGN) - Get Report

agreed to acquire biotech rival

Immunex

(IMNX)

for cash and stock worth about $30 a share, or about $16 billion altogether.

Amgen is already the world's largest biotechnology company and, if the transaction is completed, it would gain rights to Immunex's rheumatoid arthritis treatement Enbrel. The combined entity would have estimated 2002 pro forma revenue of $5.5 billion and net income of $1.5 billion.

The deal calls for each Immunex share to be exchanged for 0.44 of an Amgen share plus $4.50 cash, making the ratio 85% stock to 15% cash.

On Instinet, Amgen's stock was recently down $4.04, or 6.7%, to $56.16. Immunex was up 29 cents, or 1.1%, to $27.25.