Why can't we get news like this??????? We've made millionaires out of our astute management team.
No. 1 Amgen to buy Abgenix for $2.2B
Biotech giant says buyout of genetic firm would trim 2006, 2007
EPS; both stocks jump on news.
December 14, 2005: 4:55 PM EST
LOS ANGELES (Reuters) - Amgen Inc., the world's largest biotechnology company, said Wednesday it plans to acquire Abgenix Inc. for about $2.2 billion in cash, giving Amgen full control over the cancer drug the two are developing.
Abgenix (Research) stock surged more than 49 percent in after-hours trading after closing at $14.65, while Amgen (Research) shares climbed more than 2 percent after the bell, closing at $76.78.
Amgen said it expected the deal to reduce its adjusted earnings per share in 2006 and 2007 by 5 cents to 10 cents, and to add to earnings thereafter, assuming commercial success of experimental cancer drug panitumumab.
Amgen, headquartered in Thousand Oaks, Calif., said it would pay $22.50 a share for Fremont, Calif.-based Abgenix, plus assumption of debt.
"Abgenix is a natural strategic fit for Amgen given our strong existing relationship. ... This investment reflects Amgen's commitment to our pipeline and our growing confidence in the future success of both panitumumab and denosumab," Kevin Sharer, Amgen's president and chief executive officer, said in a statement.
The companies announced last month that panitumumab was shown to slow tumor growth in patients with advanced colon cancer who had not responded to chemotherapy.
Amgen said it believed that potential peak worldwide sales for the drug could reach $2 billion or more.
Denosumab, another antibody-based drug, is being developed as a treatment for osteoporosis.
The deal, still subject to the approvals of Abgenix's shareholders and regulatory authorities, and to other customary closing conditions, is expected to close by the end of the first quarter of 2006.
AI
