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Home / Business / Celgene sells psoriasis pill to Amgen for $ 13.4b, heading for merger in Bristol

Celgene sells psoriasis pill to Amgen for $ 13.4b, heading for merger in Bristol



A man said on Monday that it will buy the Psoriasis pill Otezla from Celgene (CELGZ), which sells the drug to remove an antitrust barrier from the planned merger with Bristol-Myers Squibb.

The purchase price for Otezla is $ 13.4 billion – higher than many analysts expected.

Bristol-Celgene investors will certainly be pleased to fetch such a high price for what was actually a sale of foreclosure products. Shareholders in Amgen (AMGN) may be a little more wary of paying so much for Otezla, although the substance is a good strategic fit.

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Otezla is approved to treat a handful of inflammatory diseases, including psoriasis and psoriasis arthritis. Last year's sales were $ 1

.6 billion, up 26% year-on-year.

In June last year, Celgene said it would sell Otezla to satisfy the concerns raised by the Federal Trade Commission during its review of the proposed $ 74 billion merger.

"This agreement represents an important step toward completing the pending merger with Celgene," said Bristol CEO Managing Director Giovanni Caforio. With the Otezla sale in place, the merger between Bristol and Celgene is now expected to end by the end of 2019, the companies said.

For Amgen, it makes good strategic sense to buy Otezla because it connects a highly profitable oral medicine with Enbrel, the company's long-standing injection therapy with great success. Amgen recently reversed a patent challenge on Enbrel, alleviating the concern for short-term biosimilar competition in the United States

for five years and to increase adjusted earnings immediately. The company said it will also realize tax benefits of $ 2.2 billion through the Otezla acquisition, thus making the net sale price $ 11.2 billion.

"The acquisition of Otezla gives Amgen a unique opportunity to provide patients with an innovative oral therapy for psoriasis and psoriasis arthritis that fits in our portfolio and complements our Enbrel and Amgevita brands," said Amgen CEO Robert A. Bradway, in a statement.


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