- Billionaire John Paulson's family office is set to make $500 million from its stake in Horizon Therapeutics, Forbes said Monday.
- Paulson & Co. has held a stake in the biotech company since 2017.
- Amgen plans to buy Horizon in a $27.8 billion deal.
Billionaire John Paulson's firm, known for betting against subprime mortgages during the global financial crisis, stands to make $500 million from investing in Horizon Therapeutics, according to Forbes, as the biotech firm gets scooped up by Amgen.
Horizon, which specializes in finding treatments for rare and autoimmune diseases, will be taken over by Amgen in a $27.8 billion acquisition. Amgen said Monday it will pay $116.50 a share in cash, a nearly 20% premium to Horizon's closing price of $97.29 on December 9.
Paulson & Co. is set to take about $520 million before taxes on the deal, Forbes estimated, based on publicly disclosed information. Forbes cited FactSet data in saying the firm has owned a stake in Horizon since 2017, with an estimate Paulson paid an average of about $31 for 6.1 million shares.
Horizon was the firm's largest disclosed holding, the report said, citing regulatory filings.
"Its an important position for us," Paulson told Forbes in emailed comments. "Excellent outcome for both companies."
Paulson & Co. is widely known for making $15 billion by shorting the US housing market at the peak of the credit bubble in 2007. The firm transitioned from a hedge fund to a family office in 2020 and now primarily invests John Paulson's fortune, which Forbes estimates at roughly $3 billion.
Horizon shares jumped up as much as 15% to $112.18 during Monday's session.