Onyx Pharmaceuticals, Inc.
) rejected a $120 per share takeover bid from
). Management at Onyx while turning down the offer stated that it
significantly undervalued the company.
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Onyx is however still interested in selling itself and is on the
lookout for potential bidders. Even though Onyx stated in its
press release that it does not intend to communicate further
regarding the $120 per share offer from biotechnology giant
Amgen, we believe that it is not the end of the story.
We believe that Amgen will continue to pursue Onyx as the
acquisition of the latter will further strengthen Amgen's
presence in the oncology field. We believe that if the deal
ultimately goes through it will do so at close to $130 per share.
Onyx, a biopharma company, is engaged in the development of novel
cancer therapies that target the molecular basis of the disease.
The key drugs at Onyx are Nexavar (hepatocellular carcinoma or
liver cancer and advanced renal cell carcinoma or advanced kidney
cancer), Stivarga (colorectal cancer and Kyprolis (multiple
myeloma). Onyx is working hard to expand the label(s) of its
marketed products. Onyx is also developing oprozomib for various
With Onyx open to offers from other bidders, it is also possible
that other big players in the biopharma space like
Biogen Idec Inc.
) express interest in Onyx resulting in a bidding war. We expect
investor focus to remain on how the whole process unfolds.
Onyx currently carries a Zacks Rank #3 (Hold). However, companies
such as Biogen Idec Inc. look more attractive with a Zacks Rank
#1 (Strong Buy).