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Amgen Pays $1.9B For Five Prime Therapeutics Acquisition

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Amgen Inc (NASDAQ: AMGNhas agreed to acquire Five Prime Therapeutics Inc (NASDAQ: FPRX) for $38 per share in cash, representing an equity value of approximately $1.9 billion.

  • The offer price of $38 represents a whopping 79% premium on the last close price of $21.26 on Wednesday.
  • Five Prime's immuno-oncology and targeted cancer therapies pipeline include five programs. Lead asset bemarituzumab is a Phase 3 ready anti-FGFR2b antibody.
  • In January, the company reported positive Phase 2 data in frontline advanced gastric or gastroesophageal junction cancer, demonstrated clinically meaningful improvements in progression-free survival, overall survival, and overall response rate.
  • Amgen says that the FPRX acquisition offers a compelling opportunity to strengthen its oncology portfolio with a promising late-stage asset to treat gastric cancer.
  • Amgen plans to leverage its presence in Japan and other Asia-Pacific markets to maximize bemarituzumab's potential.
  • As part of this transaction, Amgen will receive a royalty percentage on future net sales in Greater China, ranging from the high teens to the low twenties, from a pre-existing co-development and commercialization agreement between Five Prime and Zai Lab Ltd (NASDAQ: ZLAB).
  • Amgen reaffirmed its full-year outlook with Revenue guidance of $25.8 to $26.6 billion and non-GAAP EPS guidance of $16.00-$17.00.
  • Goldman Sachs acted as financial advisor to Amgen and Sullivan & Cromwell LLP as its legal advisor. Lazard acted as financial advisor to Five Prime and Cooley LLP as its legal advisor.
  • Amgen will host an investor call at 10:30 a.m. ET today.
  • Price Action: FPRX shares are trading higher by 78.1% at $37.86, while AMGN shares gained 1.49% at $227.27 on the last check Thursday.
 

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