Biopharmaceutical company Amgen agreed to buy Five Prime Therapeutics in a cash deal valued at $1.9 billion.
Amgen will pay $38.00 in cash for each outstanding Five Prime share. This implies a 78.7% premium to Wednesday's stock closing price.
The deal is expected to close in the second quarter of 2021, subject to antitrust clearance and approval by Five Prime shareholders.
Five Prime specializes in targeted cancer treatments.
“Five Prime's lead asset, bemarituzumab, is a first-in-class, Phase 3 ready anti-FGFR2b antibody with positive data from a randomized, placebo-controlled Phase 2 study in frontline advanced gastric or gastroesophageal junction cancer,” Amgen said. “The acquisition of Five Prime also supports Amgen's international expansion strategy. Gastric cancer is one of the world's most common forms of cancer and is particularly prevalent in the Asia-Pacific region, where Amgen expects to generate significant volume growth in the coming years.”