Amgen to Buy Onyx Pharma in $10.4 Billion Deal

After rejecting Amgen's (NASDAQ: AMGN  ) unsolicited offer of $120 per share in late June, Onyx Pharmaceutical (UNKNOWN: ONXX.DL  ) has accepted an upwardly revised offer of $125 per outstanding share from Amgen, the companies announced Sunday. The deal values Onyx at $10.4 billion, according to Amgen's statement, or approximately $9.7 billion net of Onyx's cash.

The deal would give Amgen three approved cancer treatments and several others in clinical testing. Analysts said the approved drugs, which include the liver and kidney cancer treatment Nexavar, and Onyx's experimental products are both important components in the deal.

Onyx Pharma's drug portfolio includes several cancer-related treatments including what Amgen calls "an important and growing multiple myeloma franchise, with Kyprolis (carfilzomib) for Injection already approved in the United States."

Amgen Chairman, President, and CEO Robert Bradway was quoted in the press release as saying, "We believe that Amgen is ideally suited to realize the full potential of Onyx's portfolio and pipeline for the benefit of physicians and patients." Bradway added, "Amgen has a unique opportunity to add value to Kyprolis, a product which is at an early and promising stage of its launch."

The deal is subject to customary regulatory and closing conditions, and is expected to close early in Q4 of this year.

The proposed acquisition price represents a 44% premium to Onyx's closing price June 28, the last trading day before Onyx revealed the first Amgen offer.

-- Material from The Associated Press was used in this report.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2609593, ~/Articles/ArticleHandler.aspx, 10/1/2016 3:34:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 18 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
AMGN $166.81 Up +1.36 +0.82%
Amgen CAPS Rating: ****
ONXX.DL $0.00 Down +0.00 +0.00%
Onyx Pharmaceutica… CAPS Rating: **