After rejecting Amgen's (NASDAQ:AMGN) unsolicited offer of $120 per share in late June, Onyx Pharmaceutical (UNKNOWN:UNKNOWN) 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.