Onyx Potential Sale Involves Multiple Parties, CEO Says
Onyx Pharmaceuticals Inc. (ONXX), the biotechnology company said to have rebuffed an initial takeover bid from Amgen Inc. (AMGN), is involved with several potential purchasers, Chief Executive Officer N. Anthony Coles said.
“The process is ongoing with multiple parties currently engaged in discussions,” Coles said yesterday during a conference call after the company released second-quarter earnings. He said the South San Francisco, California-based company wouldn’t comment further.
Onyx’s suitors are interested in Kyprolis, a cancer drug approved last year for some patients with multiple myeloma. The treatment may draw $3 billion in revenue by 2022, according to analysts’ estimates compiled by Bloomberg. A deal would give a purchaser a likely boost in sales as Kyprolis grows.
For Amgen, the therapy would supplement a roster of products aimed at helping cancer patients with their treatment with a medicine that targets cancer itself. Amgen, based in Thousand Oaks, California, is the world’s biggest biotechnology company by revenue. The company is said to have boosted its offer for Onyx to $130 a share from $120 a share, Bloomberg News reported Aug. 6.
Onyx shares gained 1.2 percent to $129 at 5:32 p.m. New York time after declining less than 1 percent to $127.42 at the close. Amgen declined 1.8 percent to close at $110.38.
Onyx also sells Nexavar for liver and kidney cancer in partnership with Germany’s Bayer AG. (BAYN) Onyx generated $362 million in 2012 revenue, with 80 percent coming from Nexavar and the stomach-cancer treatment Stivarga. The company gets a 20 percent royalty on Stivarga from Bayer, which has said it expects the medicine to be a bestseller.
Earlier, Onyx reported a second-quarter loss of 40 cents per share, excluding certain items, compared with a loss of 41 cents from 16 analysts’ estimates compiled by Bloomberg. Revenue of $153 million topped analysts’ estimates of $152 million.
Quarterly sales of Kyprolis were $61 million and the company reported another $10 million in revenue from the drug’s inventory at distributors that hadn’t yet been shipped to doctors and hospitals, the company said in its statement.
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