March 10, 2016
By Mark Terry, BioSpace.com Breaking News Staff
With increasing competitor pressures and facing numerous patent cliffs, Thousand Oaks, Calif.-based Amgen has been straightforward about its interest in a possible merger or acquisition this year. Once that news broke, all eyes turned toward what companies Amgen might target. Here are three possibilities.
Cambridge, Mass.-based Alnylam Pharmaceuticals is currently developing ALN-PCSsc, to cut cholesterol levels. Amgen made an entry into the cardiovascular market with the launch of Repatha, a PCSK-9 inhibitor. In July, Repatha (evolocumab) was approved for use in Europe, and in August approved for use in the U.S.
Aliya Kaleem, writing for BidnessEtc., says, “To strengthen its position in the cardiovascular therapeutic area, Alnylam Pharmaceuticals could be Amgen’s best bet. The $5 billion drug maker is developing a cholesterol-lowering treatment, called ALN-PCSsc, which reduces bad cholesterol levels in patients by more than 50 percent. Moreover, the treatment proved to be effective for a relatively long period of six months.”
Alnylam hopes to launch the drug in 2017. Scooping it up would expand Amgen’s foothold in this market while eliminating a potential competitor.
Wilmington, Del.-headquartered Incyte Corporation primarily focuses on the oncology sector. Amgen has a strong presence in oncology, but is facing a number of patent expirations and competition from biosimilars. Incyte has a current market value of about $13 billion. Its only approved drug is Jakafi, which accounts for 70 percent of company revenue. It’s expected to be a blockbuster drug by 2020. The company also has nine cancer drugs in its pipeline, three of which are JAK inhibitors. The company has also been cited as a possible acquisition target of Shire .
Kaleem writes, “Moreover, the current market weakness makes Incyte an even more attractive option for Amgen. The drug maker has lost roughly 40 percent of its share price this year and 46 percent since the healthcare sell off began in September. Incyte currently trades near its 52 week low, and thus presents a golden opportunity for an acquisition deal.”
La Jolla, Calif.-based Ligand Pharmaceuticals would be a potential smaller deal for Amgen. Ligand has a diverse portfolio in oncology, inflammatory diseases, and metabolic conditions, as well as others. The company has made quite a number of licensing partnerships this year already.
In January, Ligand announced it had inked a worldwide license agreement with Emergent BioSolutions Inc. . Emergent will use Ligand’s OmniRat, OmniMouse and OmniFlic technologies to discover human mono- and bispecific antibodies. Ligand will be eligible for access payments, patent filing fees, and potential milestone payments and royalties.
On Feb. 2, Ligand announced it had signed a global license deal with Tizona Therapeutics Inc. Again, Tizona will use the OmniRat, OmniMouse and OmniFlic platforms to generate antibodies, with various patent fees and milestone payments possible.
Amgen currently focuses on oncology/hematology, bone health, inflammation and nephrology. In addition, two newer areas are cardiovascular—with its launch of Repatha—and neuroscience. In September 2015, Amgen signed a collaboration deal with Switzerland-based Novartis to develop and commercialize neuroscience drugs. They’re working on Novartis’s CNP520 for Alzheimer’s disease, and Amgen’s AMG 334, which is in Phase III trials for migraine headaches, and AMG 301, which is in Phase I for migraine.
Besides Repatha in the cardiovascular arena, Amgen presented data in November 2015 from a Phase II trial in conjunction with South San Francisco firm Cytokinetics Inc. . They were evaluating omecamtiv mecarbil in patients with chronic heart failure.
But three companies are only the tip of the iceberg where Amgen is concerned. The company’s David Picquad, senior vice president of business development, recently told Bloomberg that his team evaluates about 3,000 opportunities each year ranging from small academic licensing options to major acquisitions. Although analysts and investors seem to feel that Amgen has money just burning a hole in its pocket to be spent, the company has shown restraint in last year’s frenzied market and is likely looking for the right fit.
