The deal provides Amgen with full ownership of panitumumab, a potential blockbuster anticancer compound that the companies have been developing together.
Shareholders of Abgenix will receive $22.50 in cash per share under the agreement which has been unanimously approved by the boards of directors of both companies and is expected to be completed by the end of the first quarter of 2006.
Panitumumab has substantial commercial potential, including in the first-line treatment of metastatic colorectal cancer in combination with other agents, including anti-angiogenic therapies.
Potential peak worldwide sales for the drug could reach $2 billion or more, assuming success in several clinical trials evaluating multiple lines of therapy in colorectal cancer and head and neck cancer.
Later this week, Amgen and Abgenix expect to initiate a biologics license application for the treatment of metastatic colorectal cancer patients who have failed standard chemotherapy.
“Abgenix is a natural strategic fit for Amgen given our strong existing relationship. Amgen has been intimately involved in all aspects of the development and commercialization of panitumumab over the last few years, providing us with substantial and realistic insight into the value of, and significant opportunities for, this cancer therapeutic,” said Kevin Sharer, president and CEO of Amgen.