Amgen Inc. plans to spend $420 million to acquire Ilypsa Inc., a privately held developer of treatments for kidney disorders, the companies announced late Monday.

Santa Clara-based Ilypsa's lead drug candidate is designed to counter abnormally high levels of phosphate that can occur in the blood of chronic kidney disease patients on dialysis. Because the drug, called ILY101, is not absorbed by the body, it has the potential for being safer and better tolerated than other treatments. The drug has completed mid-stage clinical trials.

Thousand Oaks-based Amgen said the deal has been approved by both boards and by Ilypsa shareholders. The transaction is expected to close in the third quarter.

Amgen shares closed down 3 cents to $56.91 Monday on the Nasdaq.

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