Concerns about competition – primarily Viridian Therapeutics’ ( VRDN) candidates in development for TED that could be more convenient to administer than Tepezza and that could even have superior efficacy.Lack of conviction in Tepezza outperforming market expectations in the following quarters or driving increased shareholder value even if it grows as expected.There is no clear answer, but if I were to speculate, I would say the company made that decision due to two potential concerns about Tepezza: I wondered why the company would consider selling itself during this difficult period for the equity markets with biotech exchange-traded funds ("ETFs") iShares Biotechnology ETF ( IBB) and SPDR S&P Biotech ETF ( XBI) being 24% and 54% off all-time highs, respectively, and why it ended up selling itself for what I consider to be a low buyout price. ![]() ![]() Horizon determined that Amgen’s offer was superior, Sanofi dropped out, and Horizon accepted the $116.50 per share offer from Amgen. On November 29, Horizon released a statement of a possible offer under Irish Takeover Rules, confirming the interest of J&J, Sanofi, and Amgen, but J&J quickly dropped out on December 3, and that left Sanofi and Amgen as the only two potential acquirers.Īt Horizon’s instruction, Sanofi and Amgen submitted revised offers on December 9, and on December 10, discussions continued with both companies submitting additional offers at higher prices. Company A declined to submit an offer, J&J indicated it will evaluate the information shared by Horizon, Amgen submitted an initial bid, and Sanofi increased its proposed price. Three other companies were contacted, an undisclosed Company A, Amgen, and Johnson & Johnson ( JNJ). Horizon’s 8-K filing with the SEC revealed that Sanofi ( SNY) kickstarted negotiations and Horizon determined it is in the shareholders’ best interest to approach other potential bidders. Sanofi kickstarted the buyout process, but Amgen prevailed The deal is expected to close in the first half of 2023, but I do not intend to wait for the deal to close and will wind down my position in the following weeks and will look to deploy the cash elsewhere. This is a somewhat disappointing end to my investing journey with Horizon, but I am not unhappy about this deal as it will free up quite a bit of cash to deploy to other stocks I like. I mentioned a wide range of potential deal values in my previous article, and, unfortunately, the deal came in slightly below the low end of my wide $120-190 range and below my expected deal value range of $135 to $150 per share. ![]() ( NASDAQ: AMGN) will acquire Horizon Therapeutics Public Limited Company ( NASDAQ: HZNP) for $116.50 per share, a market cap of $27.8 billion, and an enterprise value of $28.3 billion.
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