Amgen confirms the Sale of Otzela from Celgene

Celgene have sold their psoriasis blockbuster Otezla to Amgen for $13.4bn, putting their merger with Bristol-Myers Squibb back on track.
The FTC concluded that having Otezla in the same portfolio as Bristol Myers’ tyrosine kinase 2 (TYK2) inhibitor would be give the companies too big of share of the market, and one of them had to be sold in order for the merge to proceed.
Otezla is the leader in treating psoriasis for patients with product sales reaching $1.6bn last year. Analysts agree that the sale of the treatment to Amgen is a good move as it slots nicely into their existing portfolio, but many believe that Amgen paid more than expected for the drug.
Robert Bradway, chairman and chief executive officer at Amgen commented “With our 20 years’ experience in inflammatory disease, we can see the full global potential Otezla, and how it’s an affordable option for patients who suffer with chronic inflammatory conditions.”
The drug has patent exclusivity until 2028 in the US, and Bristol-Myers Squibb and Celgene can now complete their merger, with anticipation of the deal closing by the end of 2019. The sale of Otezla will be used to pay off any debts and increase a planned post-merger share re purchase from $5bn to $7bn.