Biopharmaceutical company Amgen has decided to purchase Horizon Therapeutics. Reports about this appeared a few weeks ago, other companies were named as likely buyers – Sanofi and Janssen Global.

The purchase is very promising for Amgen’s business:

• revenue is able to expand by an additional $4 billion, which is about 15% of the projected revenue in 2023;
• the bet on the development of drugs for the treatment of autoimmune diseases is able to show itself perfectly;
• the drug Tepezza is widely sold in the sales markets, against the background of the permission to sell in Europe and Japan, the profit from it will increase.

It is known that Amgen will buy Horizon at a price of $116.5 per security. This is about 20% higher than yesterday’s price.

The total amount of the transaction is estimated at $28.3 billion. Amgen will pay with funds from the company’s accounts, as well as issue debt securities. The deal is expected to close in the first half of 2023.

There are no risks of a counteroffer – competitors refused to buy – nor complications from regulatory authorities.

It is worth noticing that investors have made good money in Horizon securities – since the moment it became known about the competition for the asset, the shares have risen in price by 48%, taking into account the target of $ 116.5. This is higher than the usual premium in the framework of a merger or acquisition, which does not exceed 30%.

The target price for Amgen shares in the 12-month perspective is $350.