Micromet’s Buyout Speculation Proved to be True

Last week's announcement of Rockville-based Micromet's (NASDAQ:MITI) merger agreement with Thousand Oaks, Ca-based Amgen (NASDAQ:AMGN) was certainly big news for the region. It is one of the largest biotech acquisitions in the Mid-Atlantic and one of the largest acquisition announcements for any industry in the beginning of the new year.

But the Montgomery County, Maryland biotech gave hints that its acquisition was in the works. As predicted by Metro Business Media back in July 2011-- Amgen has made its move to aquire Micromet. At that time Micromet announced what was labeled as a collaboration agreement with Amgen that was worth nearly $1 billion. While the two companies expressed that this deal was merely collaboration, Metro Business Media made references that this deal was clearly marking the initial steps towards a buyout.

"The research based on the BiTE antibodies, which are designed to direct the body's cell-destroying, T cells against tumor cells that cause cancer is what lured Amgen to this partnership. But Micromet may seem to have capped its value with this deal assuming it does not have other drugs in its' development pipeline, which it does but unfortunately BiTE antibodies products are the bulk of it. Which means Amgen has essentially bought its most promising pipeline."

The merger is a continuing trend where smaller biotechs cannot resist the appeal of an offer from a larger competitor.

And also noted in our prediction, the tender offer for Micromet at $1.16 billion is not far from the $984 million collaboration deal which effectively took over Micromet's drug pipeline. Amgen will offer Micromet $11 per share in an all-cash transaction nearly $3 more than the close of $8.25 on January 25th before the announcement.

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