Amgen buys US renal specialist for $420M

Biotechnology major Amgen has agreed to acquire Ilypsa, a privately-held fellow USA-based company developing non-absorbed drugs for renal disorders. The firm's lead drug candidate, ILY101, is a phosphate binder for the treatment of hyperphosphatemia in chronic kidney disease patients on hemodialysis, which is currently in Phase II development.

Under the terms of the deal, Amgen will pay $420.0 million in cash and, following completion, Ilypsa will become its wholly-owned subsidiary. The acquisition, which has been approved by the boards of directors of each company as well as the shareholders of Ilypsa, is subject to customary closing conditions, including regulatory approvals, and is expected to complete in the third quarter.

"Ilypsa and ILY101 are a strategic fit for Amgen's nephrology portfolio and further demonstrate our commitment to explore, develop and commercialize promising therapies that help in the fight against kidney disease and its complications," said George Morrow, Amgen's executive vice president of global commercial operations. Recent calls by the US Food and Drug Administration to strengthen product labeling for erythropoeisis-stimulating agents have threatened revenue from Amgen's key drugs Aranesp (darbepoetin alfa) and Epogen (epoetin alfa), which together earned $10.0 billion last year (Marketletter May 21).