Horizon Therapeutics (HZNP) shares surged higher Monday after the development drugmaker agreed to a $28.5 billion takeover by Amgen (AMGN).
Amgen said it will pay $116.50 per share for Dublin, Ireland-based Horizon, a 20% premium to the group's Friday closing price and a 48% premium to late November levels when Horizon unveiled takeover interest from a host of suitors. The deal values Horizon equity at $26 billion, with the deal value rising to $28.5 billion once group debt is included.
France's Sanofi said it was no longer interested in pursuing the autoimmune and inflammatory disease specialists last week, while Horizon had also said that Johnson & Johnson (JNJ), via its Janssen Global Services unit, had expressed a buyout interest in the group but exited the race last week.
Horizon's best-selling drug, Tepezza, which is used to treat thyroid eye disease, is expected to generate $4 billion in annual sales over the coming years. The group's other major drug, Krystexxa, is used to treat patients with gout.
"The acquisition of Horizon is a compelling opportunity for Amgen and one that is consistent with our strategy of delivering long-term growth by providing innovative medicines that address the needs of patients who suffer from serious diseases," said Amgen CEO Robert Bradway. "Additionally, the potential new medicines in Horizon's pipeline strongly complement our own R&D portfolio."
"The acquisition of Horizon will drive growth in Amgen's revenue and non-GAAP EPS and is expected to be accretive from 2024," he added.
Horizon's U.S.-listed shares were marked 144% higher in early Monday trading to change hands at $111.30 each. Amgen shares, meanwhile, were marked 0.4% lower at $277.62 each.
