Amgen boosts full-year outlook after wrapping up $13.4-billion purchase of Celgene's Otezla

Amgen announced Thursday that it completed its $13.4-billion deal to acquire worldwide rights to the psoriasis drug Otezla (apremilast) from Celgene. As a result, it now anticipates full-year sales ranging from $23.1 billion to $23.3 billion, with earnings per share between $14.50 and $14.70, up from a recent projection of sales between $22.8 billion and $23 billion, and earnings from $14.20 per share to $14.45 per share.

CEO Robert Bradway remarked that "as the prevalence of chronic inflammatory diseases increases worldwide, Otezla represents a unique opportunity to further Amgen's mission of bringing innovative medicines to patients, while building on our long-standing expertise in inflammation." Celgene employees primarily dedicated to Otezla were also transferred as part of the deal.

Celgene, which was in the process of being acquired by Bristol-Myers Squibb for $74 billion, agreed to divest Otezla in August to help pave the way for Bristol-Myers Squibb to win US antitrust approval for the merger that was completed earlier this week.

According to Amgen, Otezla is expected to achieve at least low-double-digit percentage sales gains over the next five years, on average, as well as accelerate the drugmaker's near- and long-term revenue growth.

For related analysis, see ViewPoints: Amgen agrees to book Bristol-Myers Squibb's big bet on TYK2.

November 21st, 2019

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