June 28 Amgen Inc, the world's largest
biotech company, has offered to buy biotech Onyx Pharmaceuticals
for $120 per share in cash, Canadian newspaper
Financial Post reported on Friday, sending Onyx shares up about
30 percent in after-hours trading.
The Financial Post said that documents it had seen said that
Amgen had sent material to Onyx in which it said it would
propose a cash acquisition worth about $10 billion and requested
due diligence and a document review period.
The Financial Post said that Amgen had sent the documents to
Onyx about two weeks ago. Both companies are based in
California. Amgen had sales of $17.3 billion in 2012, while Onyx
brought in revenue of $362 million.
Large biotech companies, once the targets of big
pharmaceutical companies, have become acquirers themselves of
smaller biotechs as their own stocks have run up and they have
used low interest rates to bankroll their drug development.
According to the Financial Post, the documents sent to Onyx
said that Amgen was prepared to "move quickly to negotiate and
execute a combination with you" and that the proposal did not
have financing conditions on it.
"Although we have reviewed Onyx extensively, our review has
been limited to publicly available information. We would propose
a focused, confirmatory due diligence and document review
period," the documents said, according to the Financial Post.
It also said the proposal is subject to negotiation,
conditions and board approval.
In a research note, ISI Group analyst Mark Schoenebaum said
that were a deal to occur, Onyx's Kyprolis cancer drug would fit
well into Amgen's cancer drug sales and marketing infrastructure
and complement Amgen's portfolio of cancer drugs.
Onyx shares were trading at $111 after closing at $85.20, an
increase of $25.80, or about 30 percent. Amgen shares were
trading at about $98 after-hours after closing at $98.61.
Spokeswomen at Amgen and Onyx declined to comment.