Amgen Inc's Auto-Immune Portfolio
- September 3, 2019
Acquisition of Otezla Complements Auto-Immune Portfolio
Amgen (AMGN) announced plans to acquire Otezla for $13.4B ($11.2B net of tax benefits) in an immediately accretive transaction that should close by the end of 2019, assuming certain conditions are met. This complementary deal comes amidst speculation of other, larger and less rational acquisitions that have been frequently and inaccurately rumored this year thereby putting to rest concerns that Amgen might pursue a potentially value-destroying mega-deal.
We are encouraged by the strategic rationale and potential operating leverage behind adding Otezla to a leading auto-immune portfolio bolstering the financial profile of Amgen that is already supported by recent new product launches and a burgeoning pipeline. We updated our model and maintain an Outperform rating on Amgen.
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