Onyx Pharmaceuticals, Inc.
) which put itself for sale and is on the lookout for potential
bidders may face some delay in its endeavors. According to a
report published by Bloomberg, Onyx Pharma is now faced with
delays over a dispute with its potential buyer
). Though the two parties have reportedly agreed to a price,
report from Bloomberg says that Amgen has asked for data from an
ongoing study of Kyprolis. Onyx Pharma investors have reacted
negatively to the news with the share prices falling by more than
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We note that Kyprolis gained U.S. Food and Drug Administration
(FDA) approval in Jul 2012 for relapsed and refractory multiple
myeloma. Onyx Pharma is working on getting the drug approved in
Europe. Positive results from two ongoing studies, ASPIRE
(interim results due in the first/second quarter of 2014) and
FOCUS (results due in the first/second quarter of 2014), are
crucial for the filing of marketing application. However, the
FOCUS study missed the interim analysis.
We remind investors that Onyx Pharma rejected a $120 per share
takeover bid from Amgen in Jun 2013. Management at Onyx Pharma
turned down the offer stating that it significantly undervalued
the company. According to the Bloomberg report, Onyx Pharma is
now ready to accept an offer of $130 per share in cash.
Recently, several acquisition rumors have been doing the rounds
related to the Onyx Pharma takeover. Big players in the pharma
) have supposedly expressed interest in acquiring Onyx. We expect
investor focus to stay on the Onyx takeover.
Onyx Pharma currently carries a Zacks Rank #4 (Sell). However,
companies such as
Biogen Idec Inc.
) look more attractive with a Zacks Rank #1 (Strong Buy).