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ChemoCentryx Shares Double on $4B Cash Bid from Amgen
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Shares of ChemoCentryx Inc. traded 110% higher after the company reported it agreed to be acquired by Amgen Inc. for $52.00 per share in an all-cash deal valued at $4 billion. With the purchase, Amgen aims to cement its leadership position in inflammation and nephrology with the addition of ChemoCentryx's TAVNEOS® (avacopan) which the U.S. FDA approved late last year to treat ANCA-associated vasculitis, a serious autoimmune disease.

Biopharmaceutical firm ChemoCentryx Inc. (CCXI:NASDAQ), which is engaged in developing and commercializing medicines to treat autoimmune diseases, inflammatory disorders and cancer announced that it entered into a definitive agreement to be acquired by Amgen Inc. (AMGN:NASDAQ) for $52.00 per share in cash, which establishes an enterprise value for the company of approximately $3.7 billion.

Amgen Chairman and CEO Robert A. Bradway commented, "The acquisition of ChemoCentryx represents a compelling opportunity for Amgen to add to our decades-long leadership in inflammation and nephrology with TAVNEOS, a transformative, first-in-class treatment for ANCA-associated vasculitis … We are excited to join in the TAVNEOS launch and help many more patients with this serious and sometimes life-threatening disease for which there remains a significant unmet medical need."

ChemoCentryx's President and CEO Thomas J. Schall, Ph.D. remarked, "Last year, after 25 years of proud history, we at CCXI delivered on our founding promise with the approval of TAVNEOS for patients with anti-neutrophil cytoplasmic autoantibody-associated vasculitis (ANCA-associated vasculitis). It is an honor to now join Amgen's great mission, and together begin a bright new era bringing landscape-shaping medicines like TAVNEOS to those who will benefit most."

The report indicated that ChemoCentryx's premier asset is TAVNEOS® (avacopan), a first-in-class, orally administered medicine developed to treat patients with serious autoimmune diseases. The U.S. Food and Drug Administration (FDA) granted approval for TAVNEOS in October 2021 as an adjunctive treatment for adults diagnosed with severe active ANCA-associated vasculitis in combination with standard forms of therapy.

The FDA's approval was issued specifically for treating granulomatosis with polyangiitis (GPA) and microscopic polyangiitis (MPA), which ChemoCentryx noted are the two main forms of ANCA-associated vasculitis.

After being approved last October, ChemoCentryx advised that Q1/22 was the first full quarter of sales in the U.S. for TAVNEOS bringing in $5.4 million in total revenue. The company added that TAVNEOS has also been approved for use in the EU and Japan. The firm said that agreements with its international licensees are expected to remain in place. The company advised that Vifor Fresenius Medical Care Renal Pharma Ltd. will continue to own exclusive rights to commercialize TAVNEOS outside the U.S. with the exception of Japan and Canada. Kissei Pharmaceutical Co. Ltd. holds the marketing and distribution rights for Japan and Otsuka Canada Pharmaceutical holds commercialization rights for sales in Canada.

The report indicated that the transaction has already been unanimously approved by each company's respective Board of Directors and is expected to close in Q4/22, though it remains subject to approval by ChemoCentryx shareholders, ordinary closing conditions, and regulatory approval.

The firm explained that ANCA-associated vasculitis is a general term used to describe certain multi-system autoimmune diseases that cause small blood vessel inflammation. When these inflamed vessels rupture or become blocked it can develop into a wide range of symptoms inducing systemic inflammatory responses which can lead to profound deteriorative injury and dysfunction in the kidneys, lungs, and other crucial organs.

Amgen Inc. is headquartered in Thousand Oaks, Calif., and is one of the world's largest biotech companies with a market cap of around $132 billion. The firm utilizes its deep advanced human genetics expertise and fundamental knowledge of human biology to navigate through the complexities of disease. The company participates in all areas of drug development including the discovery, development, manufacture, and commercialization of human therapeutics. Amgen focuses on a broad range of treatment areas including bone health, cardiovascular disease, hematology, inflammation, nephrology, oncology, and neurosciences.

ChemoCentryx is a biopharma firm headquartered in San Carlos, Calif. The company is focused on the discovery, development, and commercialization of new medicines for use in the treatment of autoimmune disorders, inflammatory diseases, and cancer. In addition to TAVNEOS® (avacopan), the firm is presently investigating three other early-stage drug candidates designed to target chemoattractant receptors in cancer and other inflammatory and autoimmune diseases. The firm listed that "it is also developing TAVNEOS for the treatment of patients with C3 glomerulopathy (C3G), severe hidradenitis suppurativa (HS), and lupus nephritis (LN)."

ChemoCentryx Inc. started off the day with a market cap of around $1.72 billion with approximately 71.19 million shares outstanding and a short interest of about 9.2%. CCXI shares opened 108% higher today at $50.25 (+$26.14, +108.42%) over yesterday's $24.11 closing price and reached a new 52-week high price this afternoon of $50.90. The stock has traded today between $49.96 and $50.90 per share and is currently trading at $50.81 (+$26.70, +110.74%).

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