Benzinga | Jul 28, 2021 06:55AM EDT

Amgen Buys Antibody Player Focused On PSMA In $2.5B Deal

Amgen Inc (NASDAQ:AMGN) has agreed to acquire privately-held Teneobio, a biotechnology company developing a new class of biologics called Human Heavy-Chain Antibodies.

* Amgen will pay $900 million cash while committing up to $1.6 billion in milestones. In addition, Amgen cited Teneobio's "T-cell engager platform expands on Amgen's existing position in bispecific T-cell engagers by providing a differentiated, but a complementary, approach to Amgen's current BiTE platform."

* Specifically, the acquisition gives Amgen a Phase 1 program for a drug dubbed TNB-585, a PSMA/CD3 bispecific T cell engager in development for castration-resistant prostate cancer.

* Amgen plans to line that one up alongside acapatamab (formerly AMG 160) and AMG 509 as a complementary therapy.

* Five months ago, Amgen stepped up to the M&A table and acquired Five Prime for $1.9 billion, following up with the smaller Rodeo acquisition for $55 million upfront.

* Price Action: AMGN shares closed at $244.68 on Tuesday.