Serial Acquirers in Biotech: A Deep Dive into Amgen’s Acquisition Strategy

The Company: Who Is Amgen?

Founded in 1980 as Applied Molecular Genetics, Amgen has grown into one of the world’s leading biotechnology companies, headquartered in Thousand Oaks, California. With a workforce of approximately 28,000 employees, Amgen operates in over 100 countries, with major production and research facilities in the United States, Ireland, Singapore, and Puerto Rico.

Amgen’s mission is to discover, develop, manufacture, and deliver innovative human therapeutics. Its portfolio spans treatments for oncology, inflammation, bone health, nephrology, cardiovascular disease, and neuroscience. Notable products include Prolia, Enbrel, Repatha, and Otezla, each generating billions in annual revenue. The company is also advancing a promising pipeline, including MariTide, a novel anti-obesity drug.

Acquisition History of Amgen

Amgen has a robust acquisition history, having acquired 21 companies to date, with 5 acquisitions in the last five years and none in the most recent year. The company’s largest acquisition was the $27.8 billion purchase of Horizon Therapeutics in 2022, a strategic move to strengthen its rare disease portfolio.

Other notable acquisitions include:

• ChemoCentryx ($3.7B, 2022)
• Five Prime Therapeutics ($1.9B, 2021)
• Teneobio ($900M, 2021)
• Rodeo Therapeutics ($721M, 2021)

Amgen primarily targets life science companies, especially those with innovative biologics or rare disease treatments. This aligns with its strategy to expand in high unmet medical need areas and leverage its biologics manufacturing expertise. A clear trend is emerging: Amgen is increasingly focused on rare diseases, inflammation, and oncology, often acquiring companies with first-in-class or best-in-class therapies.

Acquisition Methods of Amgen

Amgen’s acquisition methods are strategically sophisticated. For the Horizon Therapeutics deal, Amgen secured a $28.5 billion bridge loan facility, underwritten primarily by Citibank and Bank of America, showcasing its ability to mobilize large-scale financing quickly.

Amgen’s preferred financial advisors include PJT Partners and Citigroup, with legal counsel from Sullivan & Cromwell LLP and William Fry LLP. The company often uses cash offers and scheme of arrangement structures, particularly in cross-border deals like Horizon.

Post-merger Integration Approach of Amgen

Amgen’s post-merger integration (PMI) strategy is highly structured and internally managed. For the Horizon acquisition, Amgen worked closely with Citi to automate cash concentration and treasury integration, indicating a strong internal Integration Management Office (IMO).

While Amgen does not publicly disclose frequent use of external integration advisors, its collaboration with Citi for treasury operations and systems integration suggests it leverages external expertise selectively, especially for financial and operational streamlining.

Divestitures of Amgen

Amgen has not been a frequent divestor, but one notable divestiture was the sale of Otezla in 2019 for $13.4 billion. This move was strategically necessary to satisfy antitrust requirements following Amgen’s acquisition of Celgene’s psoriasis portfolio. The divestiture allowed Amgen to maintain regulatory compliance while focusing on its broader inflammation strategy.

There is limited public information on Amgen’s preferred divestiture advisors, suggesting that such transactions are less central to its overall strategy compared to acquisitions.

The Future of Amgen Related to Potential Other Acquisitions

Looking ahead, Amgen is expected to continue its aggressive acquisition strategy, particularly in areas like:

• Rare diseases
• Obesity and metabolic disorders
• Oncology and inflammation
• Biosimilars and digital therapeutics

Amgen’s 2030 strategy emphasizes both internal innovation and external sourcing, with plans to double biosimilar revenues and expand its global footprint, especially in Asia-Pacific.

The company’s dual focus on first-in-class therapies and biosimilars positions it uniquely among biotech peers. It is likely to pursue mid-sized biotech firms with promising pipelines and platform technologies, especially those that complement its BiTE (Bispecific T-cell Engager) platform in oncology.

Conclusion

Amgen exemplifies the power of serial acquisition in shaping a biotech giant. With a clear strategic vision, robust financial backing, and a disciplined integration approach, Amgen continues to expand its influence across therapeutic areas and geographies.

As the biotech landscape evolves, Amgen’s next moves will be closely watched. Will it continue to dominate through bold acquisitions, or shift toward deeper internal innovation?

What do you think Amgen’s next big acquisition target will be—and why? Share your thoughts in the comments below!