Arctic Aurora portfolio company Horizon Therapeutics agreed to be acquired by Amgen for 27.8 billion USD at a 47.9% premium

Today, after discussions with multiple interested parties, Arctic Aurora LifeScience and Arctic Aurora Biotech Select portfolio company Horizon Therapeutics announced that they agreed to be acquired by Amgen for 27.8 billion USD or 116.5 USD per share, which constitutes a 47.9% premium to Horizon’s closing price on November 29, 2022, when the preliminary takeover discussions were announced, and a 18.7% premium to the share price of December 9, 2022.

The deal is the largest acquisition in Amgen’s history and the largest pharma takeover of 2022 so far. Horizon is a leading biotech company within the field of rare and autoimmune diseases. Their lead product Tepezza was approved for the treatment of thyroid eye disease in 2020 and generated 1.67 billion USD in revenues last year, while Horizon’s second largest drug is a chronic gout treatment, Krystexxa, that sold for 565 million USD in 2021. Besides, Horizon has further 9 medicines in their commercial portfolio that yielded a revenue of 3.23 billion USD last year, which is forecasted to have a double-digit growth rate in the coming years.

Accessing Horizon’s high-growth assets will help to enhance Amgen’s revenue streams as the company is facing patent expiries and competition for several of their commercial drugs. The deal is also expected to lead to a cost reduction of 500 million USD for Amgen in the next three years due to operational synergies between the two companies.

The portfolio management team of the Arctic Aurora LifeScience and Biotech Select portfolios has a long and solid track record of successfully identifying takeout candidates in the biopharmaceutical industry, as the acquisition of Horizon Therapeutics is the fourth takeover in the portfolios in 2022 and the 19th since the launch of the Arctic Aurora LifeScience fund in 2016.