New York, January 27 (FinanceEnquiry.com) - Thousand Oaks biotech giant Amgen (NASDAQ: AMGN) is planning to buy drug developer Micromet (NASDAQ: MITI) for $1.16 billion in order to diversify its product range with the leukemia and non-Hodgkin’s lymphoma drug being tested by Micromet. In 2011, Amgen’s profit slumped 20.4 percent year over year to about $3.7 billion, or $4.07 a share. However, the company reported an increase of 3.5 percent in revenue to nearly $15.6 billion.

Amgen is one of the most important pharmaceutical firms in the world but its drugs portfolio consists mostly of older products such as anemia treatment Epogen and arthritis medication Enbrel which make it more vulnerable to greater competition form a larger number of similar products in the market.

Amgen is interested in the Blinatumomab drug that is currently being developed by Rockville, Md.-based Micromet and is undergoing tests as a treatment for leukemia and non-Hodgkin's lymphoma. Amgen said that the drug will complement its oncology pipeline effectively. Moreover, although the deal is not very significant compared to Amgen’s enormous size, it will enable the company to enter the growing oncology drug market.

Analysts feel that acquiring Micromet will signal the beginning of many more acquisitions in order to diversify its business. It would be the company’s largest in the last five years. Amgen’s offer of $11 a share is 33 percent higher than Micromet’s closing price Wednesday. Micromet’s research and development center in Munich, Germany would also be taken over by Amgen as part of the deal.