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Amgen to acquire Five Prime Therapeutics for USD 1.9 billion

Robert Bradway

Amgen and Five Prime Therapeutics have announced an agreement under which Amgen will acquire Five Prime Therapeutics for USD 38 per share in cash, representing an equity value of approximately USD 1.9 billion.

Five Prime’s lead asset, bemarituzumab, is a Phase 3 ready anti-FGFR2b antibody with positive data from a randomized, placebo-controlled Phase 2 study in frontline advanced gastric or gastroesophageal junction (GEJ) cancer. Studies suggests that FGFR2b could play a role in other epithelial cancers, including lung, breast, ovarian and other cancers.

Supports Amgen’s international expansion strategy

The acquisition of Five Prime also supports Amgen’s international expansion strategy. Gastric cancer is one of the world’s most common forms of cancer and is particularly prevalent in the Asia-Pacific region, where Amgen expects to generate significant volume growth in the coming years. Amgen plans to leverage its presence in Japan and other Asia-Pacific markets to maximize bemarituzumab’s potential, it states.

In addition, as part of this transaction, Amgen will receive a royalty percentage on future net sales in Greater China ranging from the high teens to the low twenties from a pre-existing co-development and commercialization agreement between Five Prime and Zai Lab (Shanghai).

“The acquisition of Five Prime offers a compelling opportunity for Amgen to strengthen our oncology portfolio with a promising late-stage, first-in-class global asset to treat gastric cancer,” says Robert A. Bradway, chairman and chief executive officer at Amgen. “We look forward to welcoming the Five Prime team to Amgen and working with them to leverage our best-in-class monoclonal antibody manufacturing capabilities to supply additional clinical materials, as well as expanded production quantities, to realize the full potential of bemarituzumab for even more patients around the world as quickly as possible.”

Photo of Robert A. Bradway, chairman and chief executive officer at Amgen