Amgen's Onyx Acquisition Could be Delayed - Analyst Blog
August 16 2013 - 7:30PM
Zacks
Onyx Pharmaceuticals, Inc. (ONXX) 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 Amgen Inc. (AMGN). 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 7%.
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
space like AstraZeneca (AZN) 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. (BIIB) look
more attractive with a Zacks Rank #1 (Strong Buy).
AMGEN INC (AMGN): Free Stock Analysis Report
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
ONYX PHARMA INC (ONXX): Free Stock Analysis Report
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