HZNP - Amgen to acquire Horizon Therapeutics for $27.8B in cash

Amgen ( NASDAQ: AMGN ) agreed to acquire rare-disease-focused Horizon Therapeutics for $116.50 per share in cash, valuing the Ireland-based biotech at nearly $27.8B, the companies announced Monday.

Amgen ( AMGN ) shares dropped ~3% in the pre-market after the news, while Horizon ( NASDAQ: HZNP ) added ~3%, extending recent gains made following the company’s late November disclosure of a potential acquisition.

Horizon’s ( HZNP ) leading revenue generators, Tepezza, Krystexxa, and Uplizna, added $2B in sales for the company in the first nine months of the year.

Per the terms, Amgen ( AMGN ) will form a new private company called Pillartree Limited for the cash offer, which values Horizon’s ( HZNP ) ordinary share capital at approximately $27.8B on a fully diluted basis and nearly $28.3B, including debt.

The $116.50 per share bid implies a ~20% premium to Horizon’s ( HZNP ) last closing price on Friday. Amgen ( AMGN ) expects to use cash in hand and debt to finance the deal, which is expected to close in 1H 2023 and become accretive to the company’s revenue and non-GAAP earnings per share from 2024.

However, Amgen ( AMGN ) did not update the 2022 and 2030 guidance as a result of the transaction.

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