Five Prime Therapeutics Shares Gain After Amgen Deal
By Michael Dabaie
Five Prime Therapeutics Inc. shares were up 78% to $37.78 in
afternoon trading Thursday.
Amgen Inc. agreed to acquire Five Prime Therapeutics for $38 a
share in cash, representing an equity value of about $1.9
The deal includes bemarituzumab, a Phase 3 ready program for
The acquisition of Five Prime supports Amgen's international
expansion strategy, the companies said before the market open.
"Gastric cancer is one of the world's most common forms of
cancer and is particularly prevalent in the Asia-Pacific region,
where Amgen expects to generate significant volume growth in the
coming years. Amgen plans to leverage its presence in Japan and
other Asia-Pacific markets to maximize bemarituzumab's potential,"
the companies said in a release.
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 co-development and commercialization agreement
between Five Prime and Zai Lab (Shanghai) Co. Ltd.
The companies expect the transaction to close by the end of the
Amgen reaffirmed its full-year outlook with revenue guidance of
$25.8 billion to $26.6 billion and adjusted EPS guidance of $16 to
Shares of Amgen were down 0.5% to $222.74.
"Overall, we view the deal as an incremental positive and
bolt-on for Amgen," Mizuho Securities USA said in a note, adding
that it still struggles with the overall valuation of Amgen
Mizuho rates Amgen at neutral.
Write to Michael Dabaie at email@example.com
(END) Dow Jones Newswires
March 04, 2021 15:19 ET (20:19 GMT)
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