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Investors must decode Amgen's $415M deal for genetics firm

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Biotech company Amgen ($AMGN) says it will pay $415 million to buy Icelandic company deCODE Genetics, but the deal has some watchers wondering what Amgen's new CEO is really thinking here. The deal comes two years after a pair of biotech venture funds bought out of bankruptcy the struggling Icelandic biotech which had been working on the genetic triggers of disease. Amgen's CEO Robert Bradway says deCODE will put his company at the forefront of genetic research. But, as FierceBiotech points out, deCODE was forced into bankruptcy in 2009 after investors were growing increasingly concerned that much of the hype about genetics had obscured how long it would take for deCode to actually cash in on its research. And in this case, deCODE's work in genetics doesn't completely sync up with Amgen's pipeline, raising a question of whether Amgen can make any money off of much of deCode's assets. Still, Amgen has been trading at record-high prices this year, particularly since Bradway took over in May, giving him some leeway to trade outside Amgen's box. Story | More

 

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