Amgen will gain access to Tavneos, Chemocentryx’s oral small molecule drug, designed to selectively inhibit the complement component 5a receptor (C5aR), to treat autoimmune and inflammatory diseases
Amgen headquarters in Thousand Oaks, California. (Credit: Coolcaesar/Wikipedia)
Amgen has signed a definitive agreement to acquire ChemoCentryx, a biopharmaceutical company focused on rare and orphan diseases, in an all-cash transaction worth about $3.7bn.
Under the terms of the purchase agreement, Amgen will acquire all the outstanding shares of ChemoCentryx at a price of $52 per share in cash.
The transaction has been unanimously approved by the board of directors of both companies.
It is expected to close in the fourth quarter of this year, subject to regulatory approvals, approval by ChemoCentryx stockholders, and other customary closing conditions.
Through the acquisition, Amgen will get access to Tavneos, ChemoCentryx’s potential treatment for complement-driven autoimmune and inflammatory diseases.
Amgen chairman and chief executive officer Robert A Bradway said: “The acquisition of ChemoCentryx represents a compelling opportunity for Amgen to add to our decades-long leadership in inflammation and nephrology with Tavneos.
“We are excited to join in the Tavneos launch and help many more patients with this serious and sometimes life-threatening disease for which there remains a significant unmet medical need.
“We also look forward to welcoming the highly skilled team from ChemoCentryx that shares our passion for serving patients suffering from serious diseases.”
Tavneos is an orally administered small molecule, designed to selectively inhibit the complement component 5a receptor (C5aR), to treat ANCA vasculitis.
The drug has been approved by the US Food and Drug Administration (FDA) as an adjunctive treatment of ANCA-associated vasculitis.
ANCA-associated vasculitis is a broad term that refers to a group of multi-system autoimmune diseases associated with small vessel inflammation.
ChemoCentryx is also developing Tavneos for the treatment of C3 glomerulopathy (C3G), severe hidradenitis suppurativa (HS) and lupus nephritis (LN).
The drug has been granted orphan drug designation from the US FDA for the treatment of ANCA-associated vasculitis and C3G.
Also, the European Commission (EC) granted orphan medicinal product designation for microscopic polyangiitis and granulomatosis with polyangiitis, along with C3G.
ChemoCentryx president and chief executive officer Thomas J Schall said: “A fierce commitment to improving human lives is the bond that unites Amgen and ChemoCentryx today.
“Last year, after 25 years of proud history, we at CCXI delivered on our founding promise with the approval of TAVNEOS for patients with anti-neutrophil cytoplasmic autoantibody-associated vasculitis (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.”
PJT Partners served as financial advisor and Wachtell, Lipton, Rosen & Katz as legal advisor to Amgen, while Goldman Sachs & Co. served as financial advisor and Latham & Watkins as legal advisor to ChemoCentryx, on the transaction.