Biotech giant Amgen is hoping to bolster its cancer drug pipeline by buying fellow drug developer Micromet Inc. for $1.16 billion.
At $11 a share, with an Amgen subsidiary buying the majority of Micromet’s stock and then the Amgen parent company picking up the rest, the price represents a 33% premium on Micromet’s closing price Wednesday.
Thousand Oaks-based Amgen is itself among the world's premier drug makers but hasn’t had many popular drugs in years. Rockville, Md.-based Micromet, meanwhile, is testing a promising treatment for leukemia and non-Hodgkin’s lymphoma.
Known as Blinatumomab, the drug could also have other medical applications and “will serve as an important complement to our oncology pipeline,” said retiring Amgen Chief Executive Kevin Sharer in a statement.