Amgen buys BioVex for up to $1 billion; posts better-than-expected 4th-qrt 2010 results, with GAAP EPS growth at 11%

Yesterday was a busy day for world leading biotech company Amgen (Nasdaq: AMGN) which, along with its expected financial results, also said it is to acquire privately-held, venture-backed biotechnology firm BioVex Group, which is developing OncoVEX (GM-CSF), a novel oncolytic vaccine in Phase III clinical development, that may represent a new approach to treating melanoma and head and neck cancer.

Under terms of the deal, California, USA-based Amgen will pay up to $1 billion: $425 million in cash at closing and up to $575 million in additional payments upon the achievement of certain regulatory and sales milestones. The transaction has been approved by the boards of directors of each company. It is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2011. Following the completion of the transaction, BioVex will become a wholly owned subsidiary of Amgen.

Amgen has announced seven acquisitions in the last five years with an average disclosed size of $264.2 million, according to data compiled by Bloomberg. Amgen yesterday reported $17.4 billion in cash and marketable securities as of December 31 and the firm’s chairman and chief executive, Keven Sharer, told analysts in a conference call that it may spend some of that to “grow the company by making intelligent acquisitions.”