Onyx Pharmaceuticals Inc., the maker of the cancer drug Nexavar, jumped as high as 28 percent in extended trading after a report that Amgen Inc. may offer to buy the company.
Onyx reached $111.04 at 7:45 p.m. New York time yesterday after the Financial Post reported that documents show Amgen, the world’s largest biotechnology company by sales, is considering a bid of $120 a share for the South San Francisco, California-based company. Onyx earlier gained 1.9 percent to close at $86.82 for a market capitalization of $6.3 billion. The shares have increased 36 percent in the past 12 months.
Onyx and its partner, Bayer AG of Leverkusen, Germany sell Nexavar, a therapy for liver and kidney cancer, and Stivarga, a drug for stomach cancer. Onyx reported revenue of $362 million in 2012, with 80 percent coming from the two drugs. The company markets Kyprolis, a blood cancer drug approved in 2012, on its own.
“Strategically, this deal makes a great deal of sense for Amgen,” said Mark Schoenebaum, an analyst for ISI Group LLC in New York. “Amgen already has a very large cancer franchise. However, none of these drugs are direct anti-tumor agents.”
Both companies declined to comment yesterday on the report.
Amgen has been seeking new products and expanding its business overseas as sales decline for its anemia drugs Aranesp and Epogen. The medicines generated about $4 billion in 2012, about 23 percent of the company’s revenue, according to data compiled by Bloomberg.