Amgen has announced that it has entered a strategic agreement with Celgene Corporation to acquire Otezla for $13.2 billion in cash, $11.2 billion net, $2.2 billion in anticipated future tax benefits. Otezla (apremilast) is only orally administered non-biologic drug indicated for patients suffering from psoriasis and psoriatic arthritis.
With the acquisition of Otezla, Amgen anticipating a strategic shift. The addition adds oral therapy complementary to the biosimilars and biologics that Amgen have in its portfolio.
Amgen is expecting low double-digit Otezla sales for the next five years. Amgen will have intellectual property rights until 2028 in the U.S. The company is further planning to invest in the innovation.
Otezla was approved for three indications in the United States: active psoriatic arthritis, patients with oral ulcers, and Bhçet's Disease. The drug was approved in more than 50 markets, including the European Union and Japan.
Otezla revenues in 2018 were $1.6 billion, and Amgen is expecting to raise the revenues through global expansion and extension to new indications.