Amgen plans to acquire deCODE Genetics for $415 mln

Amgen plans to buy a gene-hunting company deCODE Genetics for $415 million. The gene-hunting company is based in Iceland and is known for discoveries like finding that the genetic nature of human disease was far more complex than thought.

The two companies hopes that the deal will be symbolic, as deCODE gets a well-financed partner, and Amgen capitalizes on the new research brought on by the gene-hunting business.

DeCODE  studied the local population in Iceland to identify genetic variations linked to schizophrenia, cancer and other diseases. 

The company has also published a study that identifies a rare mutation that protects people from getting the Alzheimer’s disease. DeCODE had trouble to build a sustainable business and filed for bankruptcy back in 2009. The company was brought out of bankruptcy in 2010 by Saga Investments.

Amgen is the world’s independent biotechnology company that said it can use deCODE’s finding and technology to its advantage.  “This is a magical moment when it comes to the possibility of utilizing genetics,”

Kari Stefansson, Amgen’s chief executive officer said, He also said, “I have been dreaming of a moment when we can have an impact on health care through genetics.”

The transaction doesn’t require regulatory approval, and is expected to be completed by the end of the year. Amgen acquired Micromet Inc earlier this year for $1.16 billion, helping it to add an experimental leukemia drug to its repertoire.

Amgen is a multinational biopharmaceutical company that discovers, develops and manufactures and delivers innovative human therapeutics. deCODE Genetics is a global leader in analyzing and understanding the human genome.