If you wondered what Amgen (AMGN) would do with the extra $1 billion it raised through a recent bond offering, now we know what they had in mind when they finalized the numbers. The company issued $4 billion of debt and simultaneously announced a $3 billion share buyback. It appears the extra $1 billion will be used for acquisitions.
After buying Ilypsa for $420 million on June 4th, Amgen announced Wednesday it would buy Alantos Pharmaceuticals for $300 million in cash, raising its shopping spree to nearly three-quarters of the available billion dollars. As I’ve said before, I think these small deals make sense for the company. If even one of them results in a significant product approval in the next few years it will be well worth the investments they have made.
Full Disclosure: Long shares of Amgen at the time of writing
Related Posts:
In the Face of Adversity, Amgen Buys Ilypsa to Bulk Up Product Pipeline – 06/05/07
Amgen Dependence on Aranesp Off-Label Use Greatly Exaggerated – 05/14/07
Patient Investors: Take a Look at Amgen – 03/26/07
As Predicted, More Biotech Buyouts – 11/10/06
Merck Paying $1B for Sirna, More Deals Likely – 10/31/06
Biotech and Pharma Archive
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