Am­gen takes a $2.7B stake in BeiGene, gain­ing a promi­nent al­ly in Chi­na to help seize a lead­ing role in can­cer drug com­mer­cial­iza­tion and de­vel­op­ment

Am­gen has found both a com­mer­cial part­ner to help build up its can­cer drug rev­enue in Chi­na, as well as a fast grow­ing R&D part­ner for the de­vel­op­ment of its ex­per­i­men­tal on­col­o­gy pipeline — in­clud­ing the close­ly-watched KRAS G12C drug AMG 510. And they’re pay­ing top dol­lar to close the deal to­day.

The big win­ner is BeiGene $BGNE, a Chi­nese man­u­fac­tur­er and de­vel­op­er who’s been hard at it grow­ing their port­fo­lio un­der CEO John Oyler. Oyler scored a deal that de­liv­ers $2.7 bil­lion to BeiGene in ex­change for 20.5% of the com­pa­ny — eq­ui­ty that Am­gen is pay­ing a sig­nif­i­cant pre­mi­um on at $174.85 per share. And Oyler will in­vest up to $1.25 bil­lion from his end to back work on a pipeline of rough­ly 20 more can­cer drugs in de­vel­op­ment from Am­gen.

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