Amgen to Buy Horizon Therapeutics in Deal Worth $27.8 Billion

Amgen announced it is acquiring rare disease drug company Horizon Therapeutics, maker eye disease drugs Tepezza and Uplizna, in a deal valued at $27.8 billion. The company will pay $116.50 in cash per share, a premium of 19.7% to Horizon’s last closing price.

Tepezza (teprotumumab-trbw) was approved by the FDA in January 2020 for the treatment of adults with thyroid eye disease (TED), a rare condition where the muscles and fatty tissues behind the eye become inflamed, causing the eyes to be pushed forward and bulge outwards (proptosis). Tepezza was the first drug approved for the treatment of TED. Tepezza is Horizon's largest selling drug with sales of $1.66 billion in 2021.

Uplizna (inebilizumab-cdon), which received FDA approval in June 2020, is indicated for the treatment of adults with neuromyelitis optica spectrum disorder (NMOSD). The monotherapy drug is the first and only B cell-depleting antibody approved for the disease. Horizon acquired the rights to Upliza after acquiring Viela Bio in 2021 for about $3 billion.

Dublin, Ireland-based Horizon is also the maker of gout treatment Krystexxa (pegloticase).

"The acquisition of Horizon is a compelling opportunity for Amgen and one that is consistent with our strategy of delivering long-term growth by providing innovative medicines that address the needs of patients who suffer from serious diseases,” Robert A. Bradway, chairman and chief executive officer of Amgen, said in a company announcement. “Amgen's decades of leadership in inflammation and nephrology, combined with our global presence and world-class biologics capabilities, will enable us to reach many more patients with first-in-class medicines like Tepezza, Krstexxa, and Uplinza. Additionally, the potential new medicines in Horizon's pipeline strongly complement our own R&D portfolio. The acquisition of Horizon will drive growth in Amgen's revenue and non-GAAP EPS and is expected to be accretive from 2024."

Amgen plans to finance the deal through debt and cash, and has entered into a $28.5 billion credit agreement with Citibank and Bank of America. The company said the deal increases efficiency for the combined group, leading to an estimated annual pre-tax cost reduction of at least $500 million by the end of the third fiscal year following completion of the merger.

Amgen expects the deal to close in the first half of 2023.