Amgen deal yields nice accretion but large debt position, says Baird

Baird analyst Brian Skorney said the Amgen (AMGN) acquisition of Horizon Therapeutics (HZNP) yields some nice near term accretion but the sizeable debt position and bidding war keeps him cautious. He said the company will be sitting on one of the largest debt positions in the sector and with competitors all bowing out of the process, the deal may be more optical benefit on EPS than positive ROI. Skorney maintains his Underperform rating and $185 price target on Amgen shares.