US biotechnology giant Amgen, Inc confirmed weekend speculation that it will be acquiring Horizon Therapeutics by formally unveiling a US$26.4bn swoop for the rare diseases drug maker.
This will be the most significant transaction in Amgen's history and will give the company access to Horizon's blockbuster drug, Tepezza, which is used to treat thyroid eye disease.
Amgen will pay $116.50 in cash for each Horizon share, representing a premium of nearly 20% over the stock's closing price.
This acquisition will expand Amgen's portfolio of rare disease treatments and is expected to strengthen the company's position in the market.
Here in the UK healthcare stocks were unmoved by the prospect of consolidation with the FTSE 350 Pharma & Biotech Index drifting 0.35% lower.
Horizon said last month that it was in takeover talks with three potential suitors, including Johnson & Johnson (NYSE:JNJ) and Sanofi.
However, Sanofi announced that it decided against pursuing the deal due to the price. This potential acquisition follows Amgen's $3.7bn acquisition of ChemoCentryx (NASDAQ:CCXI) earlier this year.
The potential deal comes as valuations in the biotech industry have fallen, leading to predictions of a boom in mergers and acquisitions in the sector.