Amgen's $9.5-bn Onyx deal stumbles over cancer drug data
16 Aug 2013
An agreed takeover of biotechnology company Onyx Pharmaceuticals Inc by its larger peer Amgen Inc has been stalled over a dispute on access to data from an ongoing drug trial of Onyx's new blood cancer drug.
Onyx has agreed to accept a raised $130-a-share all-cash offer from Amgen but the deal has stalled on whether Onyx will provide Amgen with data from a study designed for European approval of Onyx's blood-cancer treatment Kyprolis, Bloomberg today reported, citing three people familiar with the matter.
Onyx does not have access to the data since the trial is ongoing and is not keen to obtain results before the study is over as it may slow the approval process, the report said.
Amgen feels that the data from the drug trial, which is expected to be released in the first half of next year, would help it value Kyprolis.
In early July, the board of Onyx had rejected Amgen's unsolicited $120 a share in cash takeover bid saying that the offer significantly undervalued the company and its prospects, and added that it has received expressions of interest from other potential buyers (See:Biotechnology company Onyx rejects Amgens $10 -bn takeover bid )
Early this month, Amgen raised its offer to $130 a share or $9.5 billion saying that it revised its offer after reviewing Onyx's non-public financial statements (See:Amgen said to raise bid for Onyx Pharma to $130 a share )
With a market cap of $9.6 billion, South San Francisco, California-based Onyx develops innovative therapies for treating cancer.
Its key drugs are Nexavar, for treating patients with advanced cancer in the kidney and liver, and Kyprolis, a proteasome inhibitor for treating patients with multiple myeloma.
Revenue from Kyprolis may rise about ninefold to $2.4 billion by 2019, according to analyst estimates compiled by Bloomberg.
In has in the pipeline Sorafenib, which has been evaluated in a Phase 3 trial for treating thyroid cancer, and is currently being evaluated in late-stage studies in breast cancer and as an add-on treatment for liver and kidney cancer following surgery.
Sorafenib is developed and marketed in collaboration with Bayer HealthCare.
Carfilzomib is being studied in multiple clinical trials either as a single-agent or in combination with other therapies for the treatment of patients with multiple myeloma, and Palbociclib, a collaboration with Pfizer and currently in Phase 3 clinical development for hematologic malignancies and solid tumors.
Onyx would receive milestone and royalty payments on Palbociclib worldwide sales.
Also in the pipeline is ONX 0914, an immunoproteasome inhibitor for treating autoimmune disorders, such as rheumatoid arthritis, inflammatory bowel disease and lupus.
Several reports had in late July speculated that other bidders like Novartis, Pfizer and AstraZeneca may enter the race for Onyx.
