Amgen Lays Down $3.7 Billion For ChemoCentryx and its Autoimmune Portfolio

Amgen announced on August 4 that they would purchase a biopharmaceutical company called ChemoCentryx. The definitive agreement of the acquisition outlines that each share of ChemoCentryx will sell for $52 in cash, totaling $3.7 billion. The deal closes in the last quarter of 2022.

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What ChemoCentryx Brings to the Table

ChemoCentryx and Amgen are companies that focus on developing treatments for autoimmune diseases, inflammatory disorders, and cancer. Specifically, Amgen is interested in ChemoCentryx’s recently approved treatment for autoimmune inflammatory diseases known as TAVNEOS.

TAVNEOS, an orally administered therapy, treats patients suffering from ANCA-associated vasculitis as a complementary treatment to standard therapy. ANCA-associated vasculitis is a broad term classifying a group of multi-system autoimmune diseases with small vessel inflammation. These conditions lead to injury and dysfunction in the kidneys, lungs, and other organs when left untreated. 

In addition to TAVNEOS’ recent U.S. Food and Drug Administration (FDA) approval in October 2021, ChemoCentryx is currently developing three early-stage drug candidates that target chemoattractant receptors in other inflammatory diseases and an oral checkpoint inhibitor for cancer. These treatments align with Amgen’s portfolio of inflammation treatments, such as Otezla®, ENBREL®, TEZSPIRE®, and others. 

Acquisition to Close by the Year’s End

Both boards of directors for Amgen and ChemoCentryx unanimously approved the acquisition for $52 per share in cash, totaling $3.7 billion. However, the transaction requires ChemoCentryx shareholders’ final approval, regulatory approvals, and other customary closing conditions. 

On the acquisition, Thomas J. Schall, Ph.D., the president and chief executive officer of ChemoCentryx, said, “A fierce commitment to improving human lives is the bond that unites Amgen and ChemoCentryx today. It is an honor to now join Amgen’s great mission, and together begin a bright new era bringing landscape-shaping medicines like TAVNEOS to those who will benefit most.”

Should the acquisition be approved, the deal will close in the fourth quarter of 2022. 

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Author

Max Heirich