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Amgen makes Agreement to Purchase Onyx for $10.4 Billion

Amgen makes Agreement to Purchase Onyx for $10.4 Billion


Amgen makes Agreement to Purchase Onyx for $10.4 Billion

Amgen makes Agreement to Purchase Onyx for $10.4 BillionAmgen Inc. has finally reached an agreement with Onyx Pharmaceuticals to purchase the company for a total of $10.4 billion.

Two months prior to the agreement reached the biotech leader Amgen Inc. approach Onyx with an offer to purchase and was politely turned away. The original offer was for Amgen to buy out shares of the pharmaceutical company for $120 per share but the offer was quickly rejected. Amgen will now be purchasing all remaining shares of Onyx for $125 per share, totaling $10.4 billion dollars.

Onyx Pharmaceuticals is most well known for its drug ‘Kyprolis’ which is used to fight several types of blood cancers. The deal to purchase Onyx is representative of a 44% premium for Onyx, with a $86.82 closing price in June 2013. Comments are positive that Amgen can assist the pharmaceutical company in finally reaching its full potential while supports are singing praises of the future benefits this deal will have for not only Kyprolis but patients and health care providers as well.

Amgen is already home to many well-known and successful medicines and the purchase of Onyx will add fresh new drugs to the company’s strong profile. The list of drugs includes their signature arthritis medicine ‘Enbrel’, ‘Prolia’ drug used in treatment of Osteoporosis. Several high selling medications for the treatment of anemia including ‘Aranesp’ and ‘Epogen’ also dot the medications that have made Onyx the success it is today.

In 2012, the Amgen Company’s net worth was just over $4 billion with annual revenue of $17.3 billion on the medication market. For 2012, Onyx reported only $362 million in annual revenue for a loss of over $180 million. Hopes are high the Amgen can assist Onyx in its future goals, one of which includes receive overseas sales of Kyprolis in attempts to broaden its market. The Drug is current in trials in Europe and pending approval.

As of Friday on Wall Street, Onyx shares came in at $116.96 while Amgen experiences a slight dip to $105.60. The deal with Onyx, based out of sunny South Francisco California will be pending until sometime late in 2013 as the companies await regulatory approvals but Amgen is confident that it’s been successful in its hunt for new and promising pharmaceuticals.

The Kyprolis drug developed by Onyx has been approved by the Food and Drug Administration for treatment of multiple-Myeloma adding even more value to the medicine. Patients can now receive Kyprolis after two prior unsuccessful treatments have been administered. Amgen is hopeful the new medicine will breathe life into the company as current sales of their signature drugs have begun to flat line.

About Jack Minor

Jack Minor covers politics and business news.

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