S&P: Amgen unaffected

Standard & Poor's said Monday that the proposed acquisition of Tularik Inc. by Amgen Inc. (A+/stable/A-1) will have no affect on Amgen's ratings or outlook.

Because the acquisition will be an exchange of shares, Amgen's capital structure measures may moderately improve. Tularik is a biopharmaceutical firm developing orally active drugs that treat disease by modifying gene expression. However, none of its drugs have yet been approved. The most advanced, T67 for liver cancer, is in late-stage clinical trials.

S&P said that by acquiring Tularik, Amgen not only gains the rights to five compounds in clinical trials, but also the technology and scientists who have developed these drug candidates. The near-term financial impact is likely to be modest, with a one-time write-off of acquired, in-process research and development and an ongoing increase in R&D spending.

S&P noted Amgen's strong investment-grade ratings continue to reflect the strong performance of newer products, the growing diversity of the company's drug portfolio, and its conservative financial policies.

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