Amgen Triples Value of Investment in Neumora Therapeutics

Amgen Inc. has revealed a significant stake in biopharmaceutical company Neumora Therapeutics Inc., highlighting a threefold increase in the value of its investment since Neumora's recent initial public offering (IPO).

According to a recent filing with the Securities and Exchange Commission, Amgen now owns 35.4 million shares of Neumora, representing 23.2% of the outstanding shares. This investment began with the purchase of preferred shares worth approximately $110 million, along with exclusive license rights, which Amgen announced back in October 2021.

Following the completion of Neumora's IPO on September 19, these preferred shares were converted into 33.6 million shares of Neumora common stock. Additionally, Amgen invested an additional $30 million to acquire around 1.8 million common shares at the IPO price of $17.

In total, Amgen has spent approximately $140 million to build its stake in Neumora. As of Tuesday's closing price of $11.71 for Neumora's stock, Amgen's investment is valued at $414.2 million, reflecting an impressive growth of 195.8%.

However, it is important to note that Neumora's stock experienced a significant sell-off immediately after the IPO. On September 15, the stock closed at $16.25, a 4.4% decline from its IPO price. It even reached a low of $10.13, representing a 40.4% drop from the IPO price on September 20. Nevertheless, the stock has shown signs of recovery over the past four sessions.

Based on Tuesday's market close, Neumora has a market capitalization of approximately $1.8 billion, as reported by FactSet, compared to the $2.6 billion valuation at the IPO price.

In pre-market trading on Wednesday, Neumora's stock indicated a more than 2% increase, while Amgen shares saw a modest 0.3% increase.

Amgen's stock has performed impressively over the past three months, with a 20.9% increase through Tuesday. In contrast, the Dow Jones Industrial Average, in which Amgen is a component, has experienced a slight 0.9% decline during the same period.