US-based biotechnology company, Amgen (NASDAQ: AMGN), announced yesterday that it has entered into an agreement with Celgene Corporation (NASDAQ: CELG) in connection with its previously announced merger with Bristol-Myers Squibb Company (NYSE: BMY) to acquire worldwide rights to Otezla(R) (apremilast), a non-biologic treatment for psoriasis and psoriatic arthritis, and certain related assets and liabilities.

The deal is valued at USD13.4bn in cash, or approximately USD11.2bn, net of the present value of USD2.2bn in anticipated future cash tax benefits. Amgen believes that the Otezla acquisition offers many benefits.

Robert A Bradway, chairman and chief executive officer at Amgen, said, 'The acquisition of Otezla offers a unique opportunity for Amgen to provide patients an innovative oral therapy for psoriasis and psoriatic arthritis that fits squarely within our portfolio and complements our Enbrel(R) and AMGEVITA(R) brands. We will take advantage of our 20 years of experience in inflammatory disease to realise the full global potential of Otezla as an affordable option for patients with these serious, chronic inflammatory conditions.'

The closing of the acquisition is contingent on Bristol-Myers Squibb entering into a consent decree with the Federal Trade Commission in connection with the pending Celgene merger, the closing of the pending merger with Celgene and the satisfaction of other customary closing conditions. The transaction is expected to close by the end of 2019.