Amgen acquires Abgenix for $2.2bn

Amgen has announced it is has bought Abgenix for $2.2 billion.

The California firm Abgenix is best known for creating genetically altered mice but what interested Amgen was the experimental colon-cancer drug panitumumab.

The sale also eliminates a royalty Amgen would have had to pay on future sales of the drug denosumab (formally known as AMG 162).

Kevin Sharer, Amgen president and chief executive officer, said: “This investment reflects Amgen’s commitment to our pipeline and our growing confidence in the future success of both panitumumab and denosumab.

“Abgenix is a natural strategic fit for Amgen given our strong existing relationship.

“Amgen has been intimately involved in all aspects of the development and commercialisation of panitumumab over the last few years, providing us with substantial and realistic insight into the value of, and significant opportunities for, this cancer therapeutic.”

Amgen claims that panitumumab has the potential to create sales of over $2 billion a year, taking on Bristol-Myer Squibb’s Cetuximab (Erbitux) colon cancer drug and Genentech’s Bevacizumab (Avastin) cancer medicine.

Denosumab is also thought to be a good investment with the potential to reach similar levels of sales.

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