Amgen continues M&A flurry with $3.7bn deal
Pharma company to acquire biopharma focused on autoimmune, inflammatory and cancer therapeutics | Deal includes acquisition of Tavneos (avacopan) | Spate of acquisitions follows increased competition.
Pharmaceutical company Amgen is set to acquire ChemoCentryx, a biopharmaceutical company focused on therapeutics for autoimmune diseases, inflammatory disorders and cancer.
Amgen will pay $3.7 billion for ChemoCentryx and, as part of the deal, Amgen will acquire Tavneos (avacopan).
Tavneos is a drug approved by the US Food and Drug Administration as an adjunctive treatment for adult patients with severe active anti-neutrophil cytoplasmic autoantibody vasculitis (ANCA)-associated vasculitis.
ANCA-associated vasculitis is an umbrella term for a group of multi-system autoimmune diseases with small vessel inflammation.
‘Compelling’ opportunity
Robert Bradway, chairman and CEO at Amgen, said: “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.”
US sales of Tavneos in the first quarter of 2022 (the first full quarter of sales) were $5.4 million. The drug is also approved in other markets, including the EU and Japan.
Thomas Schall, president and CEO at ChemoCentryx, said: “Last year, after 25 years of proud history, we at ChemoCentryx delivered on our founding promise with the approval of Tavneos for patients with ANCA-associated vasculitis.
“It is an honour to now join Amgen's great mission, and together begin a bright new era bringing landscape-shaping medicines like Tavneos to those who will benefit most.”
ChemoCentryx also has three early-stage drug candidates that target chemoattractant receptors in other inflammatory diseases and an oral checkpoint inhibitor for cancer.
A series of acquisitions
In March last year, Amgen announced it would acquire clinical-stage biotechnology company Five Prime Therapeutics, which is focused on developing immuno-oncology and targeted cancer therapies, for $1.9 billion.
Later that same month, Amgen said it would buy Rodeo Therapeutics Corporation to bolster its inflammation portfolio.
Then, in July 2021, Amgen announced it would acquire Teneobio, a biotech company developing a new class of biologics called human heavy-chain antibodies for the treatment of cancer, autoimmunity, and infectious diseases.
The spate of acquisitions comes as the pharmaceutical company faces increased competition, including from biosimilars and generics, and deals with the so-called patent cliff.
“Certain of the existing patents on our principal products have expired, and we face new and increasing competition, including from biosimilars and generics,” said Amgen in its annual filing to the US Securities and Exchange Commission.
It added: “Once multiple biosimilar versions of one of our originator products have launched, competition has intensified rapidly, resulting in greater net price declines for both reference and biosimilar products, and a greater effect on product sales.”
Epogen patent loss
In 2019, Amgen lost patent exclusivity on Epogen, which treats anaemia due to chronic kidney disease or cancer treatments.
Neulasta (pegfilgrastim), an injectable treatment to stimulate white blood cells and reduce risk of infection, went off-patent in 2015. Four biosimilar versions of Neulasta are now marketed in the US, and Amgen expects other biosimilar versions of Neulasta to receive approval in 2022 and beyond.
Patents on bone drugs Prolia/Xgeva (denosumab) are set to expire between 2022 and 2025.
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