The US-based biotech major Amgen announced that it has acquired Onyx Pharmaceuticals in a deal worth about $10.4 billion. Amgen has agreed to acquire all of the outstanding shares of Onyx for $125 per share in cash. Onyx Pharmaceuticals Inc is a global biopharmaceutical company engaged in the development and commercialization of innovative therapies for improving the lives of people with cancer. Onyx has an important and growing multiple myeloma franchise, with Kyprolis® (carfilzomib) for Injection already approved in the United States (US).
Amgen intends to effect the transaction through a tender offer and expects to close at the beginning of the fourth quarter, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearance. "We believe that Amgen is ideally suited to realise the full potential of Onyx's portfolio and pipeline for the benefit of physicians and patients. Our acquisition of Onyx follows a thorough due diligence process and is fully consistent with our strategy of advancing innovative medicines that address serious unmet medical needs. We expect this acquisition will accelerate growth and enhance value for Amgen shareholders,” said Robert A Bradway, Chairman and CEO, Amgen, in a press release.
He added, "Amgen has a unique opportunity to add value to Kyprolis, a product which is at an early and promising stage of its launch.” Onyx holds global rights to Kyprolis, excluding Japan. Kyprolis has an orphan drug designation in the US with exclusivity until July 2019, and patents in the US which extend until at least 2025. Amgen will benefit from the global rights to Onyx's innovative oncology portfolio and pipeline. Amgen intends to leverage its oncology capabilities and experience to support Onyx's clinical development programs and maximize Kyprolis' potential in the US and the rest of the world.
The acquisition of Onyx also adds to Amgen's robust late-stage pipeline. This pipeline includes nine innovative products for which registration-enabling data are anticipated by 2016. Four of these are innovative, first-in class oncology products. Onyx's pipeline complements Amgen's growing oncology portfolio. In addition to accelerating Amgen's revenue growth, the acquisition of Onyx is expected to be accretive to Amgen's adjusted net income in 2015.