Celgene Sells Otezla to Advance its Sale to Bristol-Myers Squibb

Amgen (NASDAQ: AMGN) has agreed to take Otezla (apremilast) off of Celgene Corporation‘s (NASDAQ: CELG) hands. The Federal Trade Commission ruled the drug had to be divested due to concerns over competition with Bristol-Myers Squibb‘s (NYSE: BMY) pipeline. Bristol-Myers announced it was buying Celgene last January for $74 billion.

In this deal, Amgen gains the worldwide rights to Otezla, the only oral, non-biologic treatment for psoriasis and psoriatic arthritis, and certain related assets and liabilities. Sales of Otezla in 2018 were $1.6 billion and the drug has intellectual property exclusivity in the United States at least through 2028. Amgen will pay $13.4 billion in cash, or approximately $11.2 billion, net of the present value of $2.2 billion in anticipated future cash tax benefits.

Otezla is a strong strategic fit with Amgen’s expertise in psoriasis and inflammation and complements the company’s existing inflammation franchise of biologics and biosimilar products. The drug is approved in more than 50 markets outside the United States, including the European Union and Japan.

 

 

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