Amgen to acquire Five Prime Therapeutics for $1.9B

  • Amgen (NASDAQ:AMGN) and Five Prime Therapeutics (NASDAQ:FPRX) ink merger agreement under which, AMGN will acquire Five Prime for $38.00/share in cash, representing an equity value of ~$1.9B. This acquisition adds Five Prime's innovative pipeline to Amgen 's oncology portfolio with a promising late-stage candidate, bemarituzumab.
  • Amgen will commence a tender offer to acquire all of the outstanding shares of FPRX. The acquisition also supports Amgen 's international expansion strategy and is expected to close by the end of Q2.
  • Amgen plans to leverage its presence in Japan and other Asia-Pacific markets to maximize bemarituzumab's potential.
  • In addition, as part of this transaction, Amgen will receive a royalty percentage on future net sales in Greater China ranging from the high teens to the low twenties from a pre-existing agreement between Five Prime and Zai Lab.

    Amgen fundamentals

    For this year Amgen 's (located in Thousand Oaks) revenue will be around 26.45 billion USD. This is according to the average of the analysts' estimates. This is slightly more than 2020's revenue of 25.42 billion USD.

    Historical revenues and results Amgen plus estimates 2020

    fundamenteel onderzoek

    The analysts expect for 2021 a net profit of 9.7 billion USD. The majority of the analysts expects for this year a profit per share of 16.83 USD. The price-earnings-ratio equals 13.53.

    Huge dividend Amgen

    Per share the analysts expect a dividend of 6.93 USD per share. Thus the dividend yield equals 3.04 percent. The average dividend yield of the biotech companies is a moderate 0.37 percent.

    Newest target prices around 239 USD

    The most recent recommendations for the biotech company are from JP Morgan, UBS and Citigroup .

    Amgen 's market capitalization is based on the number of outstanding shares around 134.68 billion USD. The Amgen stock was the past 12 months quite volatile. Since last March the stock is 11 percent higher. This year the stock price moved between 177 and 277 dollar.

    Historical stock prices Amgen

    fundamental data amgen

    Click here for dividend Amgen. At 21.00 the stock trades 0.93 percent higher at 227.73 USD.

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