Amgen Completes Acquisition Of Otezla® (apremilast)| Amgen
Amgen completed its $13.4B acquisition of Otezla from Celgene, updating 2019 revenue guidance to $23.1B-$23.3B and EPS to $12.50-$12.75 (GAAP) and $14.50-$14.70 (non-GAAP). Otezla treats plaque psoriasis and psoriatic arthritis, with expected low double-digit sales growth.
How this was made
The 30-second read
Why it matters
The acquisition expands Amgen's inflammation portfolio and updates guidance, likely influencing investor sentiment and stock valuation.
Market read
A material M&A transaction that changes Amgen's product pipeline and financial outlook, relevant for pharma investors.
What to watch
Integration risk and potential competition from biosimilars could limit Otezla's upside.
Background
Press release announcing Amgen's completion of the Otezla acquisition and revised 2019 guidance.
Ticker impact
Amgen completed the $13.4B cash acquisition of worldwide rights to Otezla, updating its 2019 revenue and EPS guidance.
likely modest short‑term pressure as the market prices the cash payment, with longer‑term upside from Otezla growth
Acquisitions of this size typically cause an initial dip due to cash usage, but the strategic fit and guidance lift support a bullish view over the next years.
Market effects
strengthens Amgen's position in the inflammation/psoriasis market and may pressure peers like AbbVie and Johnson & Johnson.
U.S. biotech and pharma sector may see modest uplift as the deal signals continued consolidation.
global markets may view the acquisition as a sign of confidence in oral small‑molecule therapies for chronic inflammatory diseases.
Counterpoint
The cash price could be seen as overpaying for a product with modest growth, potentially dragging earnings per share.
Key entities
- CompanyAmgen
US biopharma acquiring Otezla rights.
- ProductOtezla (apremilast)
Oral therapy for psoriasis and psoriatic arthritis.
