Amgen Boosts Bid for Onyx to $130 a Share

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Aug. 7 (Bloomberg) -- Amgen, the drugmaker in pursuit of Onyx Pharmaceuticals, boosted its offer for the company to $130 a share, according to a person familiar with the matter. Cristina Alesci reports on Bloomberg Television's "Market Makers." (Source: Bloomberg)

This new offer is for 130. shares trading slightly above that level right now.

Onyx is playing hard to get.

Some analysts were expecting a price tag of 165 per share.

140 may be shy.

To go down curiously on the news.

-- down curiously on the news.

We are seeing fluctuation to it.

What is really attractive is it has developed a blood cancer medication that is expected to grow at nine-fold by 2019 for a total of $2.4 billion.

On a macro basis what is driving the deal is what is driving all special debarment deals.

That is the pipeline assets.

As you know, a specialty pharmaceutical is concentrated on one or two drugs.

Amgen that specifically, they need it -- the anemia drug that basically account for 20% of the revenue.

They need to offset that with new pipeline drugs.

What does that mean for bigger players down the road?

How does this continue to bear its?

-- to advance?

It will not be the big transformational deals that was all in the history.

We are looking at the second year of patent cliff.

They lose expressivity.

They're looking down the line and the health care reform putting pressure on the ability to fight the drug the high price.

What they're looking for is high-growth drugs, very selective acquisitions.

Not that huge an tieups.

One poster child analysts say for a deal that went sideways is astors and the core azeneca.

The premiums here are going to be big.

If they stepped it up or need to step up and pay a higher price, this will be the second biggest deal in the company's history.

They have been selected.

They really see this as a need to have asset, which is why we could see the price go higher.

To go cristina alesci, que.

This text has been automatically generated. It may not be 100% accurate.


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