Amgen Says It Will Acquire Synergen

US biotechnology company Amgen has said that it intends to purchase Synergen for $262 million. Under the merger agreement, Amgen will commence a cash tender offer for all outstanding shares of Synergen common stock for $9.25 per share. The news sent Synergen shares soaring 68% to $3.66 (see pages 8 and 9).

Synergen fell from grace in the summer when its Phase III trials of Antril (anakinra) for severe sepsis revealed a lack of efficacy (Marketletter July 25). The drug's failure led to a restructuring of the company with 60% of the workforce being laid off.

"This acquisition is a unique strategic fit between Synergen's capabilities and product candidates in neurobiology and inflammation and Amgen's expanding programs in these two medically important areas," said Gordon Binder, Amgen's chairman and chief executive. "Perhaps the most important aspect of this agreement, and the one that gives me great personal satisfaction, is the potential opportunity for Amgen to do what it does best, that is to provide very ill patients with medicines that can improve both their health and the quality of their lives," he added.