Amgen has announced it will acquire Five Prime Therapeutics for $38.00 per share in cash, representing an equity value of approximately $1.9 billion.
The acquisition adds Five Prime’s innovative pipeline to Amgen’s leading oncology portfolio, including Five Prime’s lead asset bemarituzumab, a first-in-class, Phase III ready anti-FGFR2b anti-body.
Bemarituzumab yielded with positive data from a randomised, placebo-controlled Phase II study in frontline advanced gastric or gastroesophageal junction cancer. It targets FGFR2b, which has been found to be overexpressed in approximately 30% of patients with non-HER2 positive gastric cancer, as well as other solid tumours.
Amgen’s acquisition of Five Prime also supports its international expansion strategy. 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. The company plans to leverage its presence in Japan and other Asia-Pacific markets to maximise bemarituzumab’s potential.
As part of the new deal, 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 commercialisation agreement between Five Prime and Shanghai’s Zai Lab.
Robert A Bradway, Chairman and CEO at Amgen, said: “The acquisition of Five Prime offers a compelling opportunity for Amgen to strengthen our oncology portfolio with a promising late-stage, first-in-class global asset to treat gastric cancer.
“We look forward to welcoming the Five Prime team to Amgen and working with them to leverage our best-in-class monoclonal antibody manufacturing capabilities to supply additional clinical materials, as well as expanded production quantities, to realise the full potential of bemarituzumab for even more patients around the world as quickly as possible.”
Tom Civik, President and CEO of Five Prime, added: “This is an exciting day for patients who may one day benefit from the promise of bemaritizumab and our full pipeline. I’m so proud of the Five Prime team and the science we’ve pioneered.
“We see tremendous complementarity between the two companies. Amgen has global reach, world-class resources, and they share our deep passion for science and commitment to patients. I have full confidence that Amgen is the right company to work with us to bring our innovative cancer treatments to patients and to achieve our mission to rewrite cancer.”
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