By Breakingviews
Amgen's (AMGN) Chinese deal could be good medicine. The pharma giant is paying around $2.7 billion for a 20.5% stake in biotech group BeiGene (BGNE). Splurging on a minority stake in a pre-profit outfit that just fought off a short-seller is hard to stomach. But a partnership promises quick access to China's cancer-drug market at a critical time.
The cash offer of $174.85 per BeiGene ADS represented a 36% premium to the 30-day volume-weighted share price. Investors have reason to question the hefty markup. The Chinese company's net loss widened to almost $700