Amgen Acquires Nuevolution for $167 Million to Bolster DNA-Encoded Small Molecule Drug Discovery Platform

Recently, VCBeat (WeChat Official Account: vcbeat) learned that Amgen has acquired Nuevolution for $167 million. Through this acquisition, Amgen has obtained Nuevolution’s drug discovery platform, which will accelerate the development of early-stage drugs for cancer and inflammatory diseases.

Amgen is one of the world’s leading biotechnology companies. Amgen’s products are primarily used to treat diseases in the fields of oncology, hematology, cardiology, inflammation, bone health, nephrology, and neuroscience. Since its founding in 1980, Amgen has focused on areas with unmet medical needs, seeking health solutions to improve people’s lives. Currently, Amgen’s products have benefited millions of patients worldwide.

Nuevolution is a Danish drug discovery company that has gained prominence through a series of deals with leading biopharmaceutical companies, including GlaxoSmithKline, Johnson & Johnson, Merck & Co., and Novartis.

In 2016, Amgen and Nuevolution entered into a drug discovery agreement valued at up to $410 million, aimed at seeking collaboration in the discovery of oncology and neurology therapeutics.

Amgen has persuaded Nuevolution’s board of directors and major shareholders to support its acquisition offer, valued at approximately $167 million. Amgen’s bid represents a 169% premium over Nuevolution’s share price.

Raymond Deshaies, Senior Vice President of Global Research at Amgen, stated that Amgen’s acquisition would significantly enhance Nuevolution’s efficiency in discovering novel small-molecule drugs. Leveraging Nuevolution’s drug discovery platform, the company is able to synthesize DNA-encoded small molecules and screen them for activity against specific targets, thereby rapidly identifying therapeutic solutions for diseases.

Nuevolution has an R&D team responsible for maintaining its drug discovery platform. Thomas Franch, the Chief Scientist of this R&D team, joined Nuevolution in 2001, and other members of the team have also been with the company for over 10 years.

Amgen stated that the acquisition would not change Nuevolution’s management team and key personnel. Instead, Amgen will retain positions for all Nuevolution employees while offering cash and stock compensation to renew labor contracts for those willing to stay. Under this arrangement, Amgen expects to pay up to $8.5 million in compensation.

(Compiled by: Zhang Yujie)