The pharma acquisition deal adds Five Prime’s innovative pipeline to Amgen’s immuno-oncology and targeted cancer therapies portfolio.Amgen has acquired Five Prime Therapeutics in a $1.9 billion pharma acquisition deal to advance its immuno-oncology and targeted cancer therapies portfolio.
The acquisition adds Five Prime’s innovative pipeline to Amgen’s portfolio, which complements Amgen’s efforts to bring meaningful and effective therapies to oncology patients, the company said.
Five Prime’s leading asset, bemarituzumab, is its first-in-class, Phase 3 ready anti-FGFR2b antibody. Previously, it elicited positive data from a randomized, placebo-controlled Phase 2 study in frontline advanced gastric cancer or gastroesophageal junction (GEJ).
In the Phase 2 FIGHT trial, the antibody demonstrated clinically meaningful improvements in progression-free survival, overall survival, and overall response rate in patients with gastric or GEJ cancer.
An additional analysis showed a positive correlation between efficacy and expression of FGFR2b on tumor cells. This confirms the importance of the target and the activity of bemarituzumab against the target, Amgen explained.
The positive outcomes suggest that FGFR2b could be effective against other epithelial cancers, such as lung cancer, breast cancer, and ovarian cancer.
"The acquisition of Five Prime offers a compelling opportunity for Amgen to strengthen our oncology portfolio with a promising late-stage, first-in-class global asset to treat gastric cancer," Robert A. Bradway, chairman and chief executive officer at Amgen, said in the announcement.
“We look forward to welcoming the Five Prime team to Amgen and working with them to leverage our best-in-class monoclonal antibody manufacturing capabilities to supply additional clinical materials, as well as expanded production quantities, to realize the full potential of bemarituzumab for even more patients around the world as quickly as possible."
Amgen’s acquisition of Five Prime supports its international expansion strategy as well.
For example, gastric cancer, which is one of the world’s most common forms of cancer, is prevalent in the Asia-Pacific region. This is where Amgen is looking to generate notable volume growth in the near future.
The company also plans to leverage its presence in Japan and other Asia-Pacific markets to maximize bemarituzumab’s potential.
"This is an exciting day for patients who may one day benefit from the promise of bemaritizumab and our full pipeline,” said Tom Civik, president and chief executive officer of Five Prime.
"Amgen has global reach, world-class resources, and they share our deep passion for science and commitment to patients. I have full confidence that Amgen is the right company to work with us to bring our innovative cancer treatments to patients and to achieve our mission to rewrite cancer,” Civik continued.
Under the agreement, the company will receive a royalty percentage on future net sales in Greater China from a pre-existing co-development and commercialization agreement between Five Prime and Zai Lab, located in Shanghai.
The transaction was approved by the board of directors of both companies and is expected to close by the end of the second quarter and is subject to customary closing conditions.
Conditions include the tender of least majority of the outstanding shares of Five Prime’s common stock and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Amgen explained.
The company also reaffirmed its full-year outlook with revenue guidance of $25.8 billion to $26.6 billion and non-GAAP EPS guidance between $16.00 and $17.00.
Similar to the Amgen-Five Prime acquisition deal, Merck signed a $2.75 billion pharma acquisition deal to purchase all outstanding shares of VelosBio and strengthen its oncology pipeline.
VelosBio specializes in cancer therapies that target receptor tyrosine kinase-like orphan receptor 1 (ROR1).
Dave Johnson, founder and chief executive officer of VelosBio, explained that its lead product candidate, VLS-101, is now well-positioned to achieve its maximum potential to benefit appropriate cancer patients in need