Horizon Therapeutics Acquired By Amgen For $28.5 Billion, Sees A Stock Price Surge

The share prices for Horizon Therapeutics have experienced a major surge in the Wednesday trading session. The surge was recorded after the company announced it had agreed to be acquired by Amgen.

Horizon Therapeutics Acquired for $28.5 Billion

The development drugmaker made the announcement of finalizing the deal with Amgen, a major multinational biopharmaceutical company from the United States.

Horizon Therapeutics announced that they had been negotiating the acquisition deal with Amgen. They have finally agreed to their deal and they will proceed with the next process.

Amgen had reportedly offered a $28.5 billion takeover bid to Horizon Therapeutics, which the company has accepted.

According to sources familiar with the matter, Amgen had offered $116.50 per share for the acquisition of the company.

The acquiring company has reportedly agreed to pay a 20% premium to the stakeholders on top of the Friday closing price.

Compared to the month of November, they are paying a 48% premium price to the stakeholders for each stock.

The price per stock offered by Amgen to Horizon values the latter at a $26 billion valuation. The company also has a debt and Amgen has agreed to pay that amount as well.

According to the deal, the debt amount is $2.5 billion, making it a $28.5 billion acquisition for Amgen.

Other Potential Buyers

Amgen was not the only buyer that had placed a bid to acquire the Irish drugmaker. Johnson & Johnson and Sanofi from France were also in the race to place a bid and take over Horizon.

However, both competitors ended up exiting the battle, leaving Horizon with only one option which was Amgen, offering $28.5 billion for the acquisition.

Johnson & Johnson had expressed its intentions of acquiring Horizon at first but it ended up exiting the deal. The company had not made a direct approach to place the bid.

The company had its Janssen Global Services unit reach out to the concerned parties at Horizon to talk about the potential takeover of the company.

However, the company decided to leave the bidding war and exited the deal.

Compared to Johnson & Johnson, Sanofi had shown more interest in taking over Horizon. Initially, the officials communicated that they were interested in the inflammatory and autoimmune disease specialist.

The company later announced that they were no longer interested in the company and exited the deal before Johnson & Johnson.

Tepezza is the Main Attraction

The major reason why Horizon is in very high demand is because of Tepezza, the most popular drug manufactured by Horizon.

The particular drug is used for eye diseases, mainly to treat thyroid eye disease. It has been claimed by Horizon that their Tepezza drug alone has the potential to bring in annual sales worth over $4 billion.

They are confident that in the upcoming years, Tepezza will start delivering high sales and revenue. Amgen has been monitoring the company for a while and is confident that it will be able to benefit from its drugs.

Krystexxa is also another major drug that is created by Horizon Therapeutics. The particular drug is used for the treatment of gout.

Remarks by Robert Bradway

Amgen’s CEO also had very positive remarks to share about Horizon Therapeutics and its expectations with the company’s expertise and specialties in the respective field.

Broadway stated that they have been watching the growth of Horizon and they realized it was the best opportunity to acquire the company.

They are confident that Horizon Therapeutics will prove to be one of the most important units for their company’s growth and increased revenues.

Together, they will be able to do experiments and create medicines that will be even more effective for different kinds of diseases.

They want to work together for finding the best medicines for the most serious diseases.

After the announcement, the share prices for Horizon jumped higher by 16.34%. On the other hand, the share prices for Amgen surged by 0.4%.