Wise Young
05-09-2002, 06:20 AM
This is an interesting purchase for the following reasons. First, it gives some indication of the sizes of the deals involved in the pharmaceutical industry. Amgen buys immunex for $17 billion! Second, Schering-Plough bought leukine from Immunex (Amgen) for $380 million despite sales of only $100 million in 2001. Third, Schering-Plough just sold a 24% stake in a agricultural product company (CropScience) to Bayer AG for 1.5 billion euros! Finally, Schering-Plough has market value of $11.7 billion. Schering-Plough is one of the leading companies focussing on birth control and multiple sclerosis therapies.
Source: Reuters (http://reuters.com/news_article.jhtml;jsessionid=2OJQIAODUPAWWCRBAE0C FFAKEEATGIWD?type=businessnews&StoryID=914464)
Schering Buys Immunex Cancer Drug
May 03, 2002 01:42 AM ET Email this article Printer friendly version
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By Steven Silber
FRANKFURT (Reuters) - Germany's Schering AG said on Friday it was buying U.S.-based Immunex Corp.'s Leukine cancer treatment in its latest bid to expand its biotech prowess in the world's biggest drugs market.
Schering, Germany's second largest listed drugs group, said in a statement it agreed to buy Leukine for about $380 million as part of the U.S. biotechnology firm's pending acquisition by bigger rival Amgen Inc.
Immunex sold Leukine because it is too similar to Neupogen, Amgen's blockbuster treatment for fighting infection in cancer patients undergoing chemotherapy.
The move reflects a trend among firms in the fragmented biotech sector, which are gaining critical mass by accessing each other's products, cash and markets.
Immunex, which is being acquired by Amgen for about $17 billion in cash and stock, will also receive two further payments based on the development of Leukine for the Crohn's disease and if certain sales targets are reached.
EARNINGS POSITIVE
Schering said the Leukine acquisition would make a positive contribution to profits immediately but gave no figures and said the deal would not affect its full year results forecast.
The group, which has a market value of more than $11.74 billion, expects to post double-digit growth in net profit and operating profit this year on high single-digit sales growth.
The Schering deal, which Immunex said could close as early as June, is the Berlin-based group's second major U.S. biotech acquisition since it announced in March it was buying Collateral Therapeutics Inc in a stock deal valuing the firm at $159 million.
Schering's ability to shop for acquisitions has been enhanced by the sale of its 24 percent stake in Aventis CropScience to Bayer AG, from which it will get 1.5 billion euros in a deal expected to be clinched in May.
Leukine, currently in Phase II development for Crohn's disease, a chronic inflammatory disease of the intestines, had sales of more than $100 million in 2001.
Leukine provides support therapy in hematological oncology. It is based on growth factor GMCSF, used for restoring the immune system after chemotherapy and bone-marrow transplants.
Schering, a world leader in birth control pills and multiple sclerosis treatments, will also develop Leukine for a potential new indication in Crohn's disease, a chronic inflammation of the digestive tract.
The deal is contingent upon Amgen's acquisition of Immunex and needs approval by the U.S. Federal Trade Commission (FTC).
Source: Reuters (http://reuters.com/news_article.jhtml;jsessionid=2OJQIAODUPAWWCRBAE0C FFAKEEATGIWD?type=businessnews&StoryID=914464)
Schering Buys Immunex Cancer Drug
May 03, 2002 01:42 AM ET Email this article Printer friendly version
Â*
By Steven Silber
FRANKFURT (Reuters) - Germany's Schering AG said on Friday it was buying U.S.-based Immunex Corp.'s Leukine cancer treatment in its latest bid to expand its biotech prowess in the world's biggest drugs market.
Schering, Germany's second largest listed drugs group, said in a statement it agreed to buy Leukine for about $380 million as part of the U.S. biotechnology firm's pending acquisition by bigger rival Amgen Inc.
Immunex sold Leukine because it is too similar to Neupogen, Amgen's blockbuster treatment for fighting infection in cancer patients undergoing chemotherapy.
The move reflects a trend among firms in the fragmented biotech sector, which are gaining critical mass by accessing each other's products, cash and markets.
Immunex, which is being acquired by Amgen for about $17 billion in cash and stock, will also receive two further payments based on the development of Leukine for the Crohn's disease and if certain sales targets are reached.
EARNINGS POSITIVE
Schering said the Leukine acquisition would make a positive contribution to profits immediately but gave no figures and said the deal would not affect its full year results forecast.
The group, which has a market value of more than $11.74 billion, expects to post double-digit growth in net profit and operating profit this year on high single-digit sales growth.
The Schering deal, which Immunex said could close as early as June, is the Berlin-based group's second major U.S. biotech acquisition since it announced in March it was buying Collateral Therapeutics Inc in a stock deal valuing the firm at $159 million.
Schering's ability to shop for acquisitions has been enhanced by the sale of its 24 percent stake in Aventis CropScience to Bayer AG, from which it will get 1.5 billion euros in a deal expected to be clinched in May.
Leukine, currently in Phase II development for Crohn's disease, a chronic inflammatory disease of the intestines, had sales of more than $100 million in 2001.
Leukine provides support therapy in hematological oncology. It is based on growth factor GMCSF, used for restoring the immune system after chemotherapy and bone-marrow transplants.
Schering, a world leader in birth control pills and multiple sclerosis treatments, will also develop Leukine for a potential new indication in Crohn's disease, a chronic inflammation of the digestive tract.
The deal is contingent upon Amgen's acquisition of Immunex and needs approval by the U.S. Federal Trade Commission (FTC).