Onyx Pharmaceuticals to acquire Proteolix for $276 million

US-based biopharmaceuticals maker Onyx Pharmaceuticals, yesterday said it had agreed to acquire privately held cancer drug developer, Proteolix Inc Proteolix Incfor $276 million in cash.

Onyx develops and researches drugs for treatment in Oncology.

San Francisco-based Proteolix focuses on discovering and developing novel therapies that target the proteasome for the treatment of hematological malignancies and solid tumors.

Proteolix's lead compound, carfilzomib, is a proteasome inhibitor currently in multiple clinical trials, including an advanced Phase 2b clinical trial for patients with relapsed and refractory multiple myeloma.

Emeryville, California-based Onyx will pay Proteolix an additional $575 million on achieving certain development milestones and approvals for its drug carfilzomib are reached.

Onyx will pay $276 million in cash and another $40 million in 2010 if carfilzomib reaches a development milestone. Onyx will pay an additional $535 million if carfilzomib is approved in the US and Europe, which includes a $170 million if the US Food and Drug Administration decides to accelerate the review of the drug.