Business Case Studies, Mergers, Acquisitions and Takeovers Case Study, Amgen's Acquisition of Abgenix,The Expected Synergies

print page
Tell A Friend
Bookmark
 

Case Categories

Mergers, Acquisitions and Takeovers Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Amgen's Acquisition of Abgenix: The Expected Synergies

Publication Year : 2006

Authors: Snehasis Chaudhuri

Industry: Health Care

Region:US

Case Code: MAA0126K

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study
OR





Abstract:
Amgen, the world's largest biotechnology company, completed the acquisition of Abgenix, Inc., for $22.50 in cash per share of common stock, a 54 percent premium over Abgenix's last closing price. The acquisition of Abgenix provided Amgen with full ownership of one of its most important pipeline products, “Panitumumab”. Panitumumab was their most advanced cancer therapeutic and was a natural extension from Amgen's existing oncology supportive care franchise. The acquisition also eliminated a royalty that Amgen would have paid to Abgenix on future sales of Denosumab. Some analysts believed it to be a right move, as of the end of September, Amgen had over $5.5 billion in cash and was generating over $1 billion in free cash flow per quarter, but others were skeptical about the high expected sales figure of panitumumab. This case deals with the acquisition of Abgenix by Amgen. It provides a brief overview about the two companies and highlights Amgen’s focus on oncology segment. This is followed by a brief overview of biotechnology sector and the global cancer drug market. The case also deals with the expected synergies and possible challenges that will result from the acquisition.

Pedagogical Objectives:

  • To understand, why pharmaceutical companies become aggressive over a particular drug
  • To understand the different modes of commercializing a new drug developed by a pharmaceutical company
  • Evaluation of the possible future strategic options for Merck
  • To understand the synergies of a merger of two pharmaceutical companies.

Keywords : Acquisition; Synergy; Amgen; Abgenix; Biotechnology; Oncology; Cancer; Panitumumab; Metabolic disorder; Inflammation; Licensing; Clinical trial; Pipeline; Xenomouse; Venture capital

Contents : 
Amgen Becomes a Major Cancer Player
Amgen’s Oncology portfolio
Abgenix Profile
Biotechnology Industry
Expected Synergies
Four Major Types of Cancer
Full List of Amgen’s Products
History of Amgen's Stock Splits

Recently Bought Case Studies

    Recently Bought Case Studies
advertisement

    Executive Interviews

  • Dr James O` TooleDr James O` Toole

    Dr James O` Toole, Daniels Distinguished Professor of Business Ethics at the University of Denver’s Daniels College of Business
    Speaks on The Making of a CEO
  • Paul BrackenPaul Bracken

    Prof. Paul Bracken, leading expert in global competition and the strategic application of technology in business and defense.
    Speaks on Midlife Crisis
  • Bill FischerBill Fischer

    Bill Fischer, Professor of Technology, IMD
    Speaks on Building High Performance Teams
  • View All Executive Interviews»






Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 504, Andhra Pradesh, INDIA.
Mob: +91- 9640901313, Phone: +91 - 08417 - 236672, Fax : + 91 - 08417 - 236674
E-mail: casehelpdesk@ibsindia.org

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap