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July 13, 2020updated 14 Jul 2020 7:57am

Amgen makes $421m additional investment in BeiGene

Amgen has made an additional investment of approximately $421m in Chinese biotechnology firm BeiGene's registered direct offering of ordinary shares.

Amgen has made an additional investment of approximately $421m to the registered direct offering of ordinary shares of Chinese biotechnology firm BeiGene.

The investment will maintain Amgen’s existing pro-rata ownership of about 20.3% in BeiGene.

Last year, Amgen announced plans to acquire a 20.5% stake in BeiGene for approximately $2.7bn in cash, or $174.85 per BeiGene American depository share.

The acquisition was intended to boost Amgen’s footprint in the oncology market in China. With the new investment, Amgen will support their ongoing partnership.

In a statement, Amgen said: “This additional investment reflects Amgen’s confidence in the progress the companies are making in their ongoing oncology collaboration in China, the world’s second-largest pharmaceutical market.”

Beigene intends to raise a total of $2.1bn in a direct offering of 145.8 million shares to support its drug research and market treatments in China, as well as the US, noted Bloomberg.

The shares will be available at $14.23 each, which is equivalent to a price of $185 per American Depository Share. Subject to customary closing condition, the offering is anticipated to close on or around 15 July.

Commenting on the direct offering, BeiGene said: “BeiGene intends to use the net proceeds from the offering for working capital and other general corporate purposes, as disclosed in further detail in the prospectus supplement to be filed in connection with the offering.”

BeiGene works to discover, develop, manufacture and commercialise new medicines to improve treatment outcomes for cancer patients.

Currently, BTK inhibitor Brukinsa (zanubrutinib) in the US and China and anti-PD-1 antibody tislelizumab in China are the two in-house discovered cancer drugs marketed by the company.

In addition, the company markets or plans to market in China additional oncology medicines licensed from Amgen, Bristol Myers Squibb (BMS) unit Celgene Logistics Sàrl and EUSA Pharma.

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