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• Amgen will pay $52 in cash for each share of ChemoCentryx
Amgen Inc (NASDAQ: AMGN) on Thursday said it would buy ChemoCentryx Inc (NASDAQ: CCXI) for $3.7 billion as the US drugmaker seeks to strengthen its portfolio with a newly approved potentially blockbuster anti-inflammation treatment.
ChemoCentryx, whose shares were down nearly 34% this year as of the last close on Wednesday, more than doubled in value on Thursday.
California-based Amgen will pay $52 per share in cash, a premium of nearly 116% to ChemoCentryx stock's closing price on Wednesday.
The deal comes at a time when Amgen's top-selling arthritis drug, Enbrel, has been facing tough competition, with its patents expected to expire in 2029.
Last year, the US Food and Drug Administration approved ChemoCentryx's Tavneos — treatment for patients with a rare form of blood vessel inflammation, which brought in sales of $5.4 million in the first quarter of its launch.
Analysts expect more than $1 billion in sales by 2027.
ChemoCentryx has three drugs in early-stage trials to treat inflammatory diseases and is also developing a cancer drug.
Picture Credit: Reuters
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