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Amgen (NASDAQ:AMGN) is set to acquire ChemoCentryx (NASDAQ:CCXI) for $52 per share in cash, it was announced Thursday, representing an enterprise value of approximately $3.7 billion.
The transaction, which is subject to ChemoCentryx stockholder approval, is expected to close in the fourth quarter of 2022.
“The acquisition of ChemoCentryx represents a compelling opportunity for Amgen to add to our decades-long leadership in inflammation and nephrology with TAVNEOS, a transformative, first-in-class treatment for ANCA-associated vasculitis,” said Robert Bradway, chairman and chief executive officer at Amgen.
A Mizuho analyst, who maintained a Neutral rating and $208 price target in a note following the announcement, said, “Amgen announced the acquisition of ChemoCentryx (CCXI, not covered) for ~$4Bn; 3x peak sales multiple by our math (so seems reasonable for Amgen), and also generally good for biotech tape with >100% premium paid to yesterday’s close.”
“Tavneos is an oral, FDA-approved add-on drug for adults with a rare form of blood vessel inflammation called severe active anti-neutrophil cytoplasmic autoantibody (ANCA)-associated vasculitis,” added the analyst. “Consensus WW peak sales for Tavneos in ANCA-associated vasculitis is ~$1000MM, a bit below our preliminary math of ~$1400MM…so, 3x peak sales multiple on the deal on this asset and indication alone, seems reasonable for Amgen.”
Elsewhere, a BMO Capital Markets analyst said, in a note titled “Biotech Is Back!?,the “main driver is Tavneos (avacopan).”
“1Q22 revs were $5.4M while consensus expects $66M in FY22, $200M in FY23 and upside to $1.7B by 2030 with Hidradenitis Suppurativa and C3 Glomerulopathy. Deal seems commercially driven, given limited pipeline (one Ph 2skin/GI asset, one Ph 1 oral PDL1/PD1i),” added the analyst, who has a Market Perform rating and $251 price target on Amgen.
