Print“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.”
Amgen said Sunday that it agreed to acquire Onyx Pharmaceuticals for $10.4 billion or $125 a share, giving the biotech giant access to the multiple myeloma drug Kyprolis. The price represents a 44 percent premium on Onyx’s $86.84 close June 28, the last close before rumors of a deal first surfaced.
Several Big Pharma companies had reportedly been in talks to buy the company with Wall Street anticipating a deal for around $130 a share. Those expectations got tempered, though, when reports indicated talks with Amgen, long seen as the lead bidder, hit a snag over access to data on clinical studies relating to efforts to win European approval for Krypolis.
Onyx holds global rights to Kyprolis, excluding Japan. Kyprolis has an orphan drug designation in the U.S. with exclusivity until July 2019, and patents in the U.S. which extend until at least 2025. In addition to Kyprolis, Onyx has three partnered cancer drugs including Nexavar with Bayer HealthCare, Stivarga with Bayer, and palbociclib with Pfizer. Onyx also has multiple oncology compounds in various stages of clinical development.
Amgen says it intends to leverage its oncology capabilities and expertise to support Onyx's clinical development programs and maximize Kyprolis' potential in the U.S. and the rest of the world. The acquisition bolsters Amgen's late-stage pipeline, which includes nine products for which registration-enabling data are anticipated by 2016. That includes four first-in class oncology products.
“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,” says Amgen CEO Robert Bradway.
Amgen says it will finance the acquisition with $8.1 billion in committed bank loans and the balance with cash available in the U.S. The loans have five year terms and carry an average interest charge of LIBOR plus 104 basis points. The acquisition of Onyx is expected to be accretive to Amgen's adjusted net income in 2015.
August 25, 2013
http://www.burrillreport.com/article-amgen_to_acquire_onyx_for_10_4_billion.html
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