By Manas Mishra
(Reuters) -Amgen Inc said on Thursday it would buy ChemoCentryx Inc for $3.7 billion as the U.S. drugmaker seeks to bolster its portfolio with a newly approved potential blockbuster anti-inflammation treatment.
Shares of ChemoCentryx, which were down nearly 34% this year as of last close, more than doubled in value to trade at $51.40 before the bell.
Thousand Oaks, California-based Amgen will pay $52 per share in cash, a premium of nearly 116% to ChemoCentryx stock’s closing price on Wednesday.
The deal comes at a time Amgen’s top-selling arthritis drug, Enbrel, has been facing competition from newer branded rivals, with its patents expected to expire in 2029.
ChemoCentryx’s Tavneos was approved last year to treat patients with a rare form of blood vessel inflammation, and brought in sales of $5.4 million in the first full quarter of its launch.
Analysts expect more than $1 billion in sales by 2027, according to Refinitiv data.
The company has three drugs in early-stage trials to treat inflammatory diseases and is also developing a cancer drug.
(Reporting by Manas Mishra in Bengaluru; Editing by Aditya Soni and Vinay Dwivedi)
