After the rumors, the official confirmation arrives. The California biotechnology company Amgen will acquire Horizon Therapeutics, an Irish biopharmaceutical company specializing in rare and autoimmune diseases, for approx 27,8 billions of dollars. This is the largest M&A deal ever made by Amgen, but above all the largest merger in the healthcare sector Part 2022
"L 'acquisition of Horizon it is an interesting opportunity for Amgen, which aligns with the long-term growth strategy by providing innovative medicines that meet the needs of patients with serious diseases. Amgen's decades of leadership in inflammation and nephrology, combined with our global presence and world-class biologic capabilities, will enable us to reach many more patients with world-class medicines such as Tepezza, Krystexxa and Uplizna,” he said. Amgen CEO Robert Bradway in a press release.
Amgen acquires Horizon Therapeutics: details of the deal
Based on the announcement, Amgen will pay, in cash, $116,50 per share. A figure which corresponds to a premium of approximately 47,9% over the closing price on 29 November 2022 (i.e. the last price before the announcement of a possible offer under Irish takeover rules) and approximately 19,7% compared to the closing price on Fridays. The acquisition values the entire share capital of Horizon Therapeutics approximately $27,8 billion on a fully diluted basis and implies an enterprise value of approximately $28,3 billion.
According to Amgen estimates, the transaction is expected to help accelerate revenue growth and increase adjusted earnings per share from 2024. It is also expected to increase efficiency for the combined group, leading to an estimated annual pre-tax cost reduction of at least $500 million by the end of the third fiscal year following completion of the deal.
The Wall Street reaction
On Wall Street, a few minutes after the start of trading, the title Horizon Therapeutics flies 14,5% to 111,35 dollars per share, while Amgen shares they travel just below parity (-0,4%) at 277,51 dollars.
