Amgen is said to agree to buy horizon at $26 billion valuation

Amgen Inc. has agreed to buy Horizon Therapeutics Plc at a valuation of about $26 billion in what would be its biggest-ever acquisition, according to a person familiar with the matter.

The US biotechnology giant offered around $116.5 for each Horizon share, said the person, who asked not to be identified as the information is private. The offer price is at a around 20% premium to Horizon’s closing price of $97.29 on Friday.

Amgen has been in advanced discussions with Horizon and a deal may be announced in the coming days, Bloomberg News reported earlier. The deal or announcement could be delayed and talks could still fall apart, people familiar with the matter have said.

Horizon shares have surged 24% since Nov. 29, when it disclosed Amgen, Sanofi SA and a Johnson & Johnson unit were in preliminary talks about a possible acquisition. That pushed its market value to $22 billion, prompting Sanofi to back out Sunday, as J&J did earlier this month. Amgen has a market value of about $149 billion after rising 24% this year.

Sanofi said earlier on Sunday that it won’t proceed with an offer for Horizon because the “transaction price expectations do not meet our value creation criteria.” A takeover by the French drugmaker would have been one of its largest.

Representatives for Amgen and Horizon couldn’t be immediately reached for comment outside of regular business hours.

Traded on the Nasdaq exchange and headquartered in Dublin, Horizon gets almost half of its $3.6 billion in annual sales from Tepezza, a treatment for a painful autoimmune condition called thyroid eye disease. Other top drugs include Krystexxa for chronic gout and Ravicti, a treatment for inborn urea disorders.

Amgen, based in Thousand Oaks, California, last month reported revenue and profit that beat analyst estimates as 11 drugs had record quarterly sales and the company kept operating expenses in check.

Emerging from the exhausting focus on Covid-19, big drugmakers are resuming their search for innovative therapies, especially for those that treat rare diseases and cancer. Still, growing market volatility and a looming economic recession could dampen the appetite for dealmaking.