Amgen to Buy deCODE Genetics for $415 Million
Biotech company Amgen announced today that it has entered into a definitive agreement to acquire deCODE Genetics, a human genetics research company based in Iceland.
The $415 million all-cash transaction was unanimously approved by the Amgen Board of Directors, requires no regulatory approval, and is expected to be finalized before the end of the month. The acquisition cost is equivalent to 2.7% of Amgen's $15.6 billion 2011 revenue, or 11.3% of its net profit for the same period.
"deCODE Genetics has built a world-class capability in the study of the genetics of human disease," said Amgen President and CEO Robert Bradway in a statement. "This capability will enhance our efforts to identify and validate human disease targets. This fits perfectly with our objective to pursue rapid development of relevant molecules that reach the right disease targets while avoiding investments in programs based on less well-validated targets."
In its 16 years of existence, deCODE Genetics has identified risk factors for heart disease, cancer, and dozens of other diseases. The private company is currently owned by Saga Investments LLC, a consortium including Polaris Venture Partners and ARCH Venture Partners.
The article Amgen to Buy deCODE Genetics for $415 Million originally appeared on Fool.com.Justin Loiseau has no positions in the stocks mentioned above. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.