One of the world’s leading biotechnology companies Amgen has offered to acquire Nuevolution for $166.8 million. Nuevolution is a biopharmaceutical company headquartered in Denmark.
The company announced a recommended public cash offer to Nuevolution’s shareholders. Nuevolution’s shares are listed on Nasdaq Stockholm, according to the press release.
Since 2016, both Amgen and Nuevolution have participated in a ‘multi-target collaboration’. Nuevolution closely collaborating with Amgen will increase the capabilities of its technology. That said, the integrated business will also reinforce Amgen’s experience in the areas of research and development, manufacturing, and commercialisation, the press release said. Overall, this will encourage Amgen to efficiently serve patients across its select therapeutic areas.
As part of the offer, Amgen will provide Nuevolution’s full-time employees with a ‘retention agreement’. The reason for establishing the agreement is to retain the employees after completion of the offer and during a subsequent integration phase, the press release stated.
“Under the Arrangement, Amgen would pay sign-on compensation to those individuals who remain employed by Nuevolution or Amgen after the closing of the Offer, which would consist of cash payments during a period of up to three years after closing of the Offer and of Restricted Stock Units (“RSUs”) linked to Amgen’s shares listed on NASDAQ in the United States,” it said.
The Swedish Securities Council said that the arrangement is in compliance with the takeover rule provided that Nuevolution’s board of directors approved the arrangement. In addition, the company’s shareholders and the securities market should be informed of the approved arrangement.
According to the company website, Nuevolution has partnered with pharma giants such as Novartis, Johnson & Johnson, Boehringer Ingelheim, GlaxoSmithKline and Merck in the past.