Amgen Reportedly Close To Buy Onyx Pharma For About $125 A Share

(RTTNews) - Amgen Inc. (AMGN) is close to an agreement to acquire cancer drug maker Onyx Pharmaceuticals Inc. (ONXX) for about $125 per share, or around $10 billion, according reports citing people familiar with the news.

The takeover offer of $125 a share, represents a premium of 6.9 percent from Onyx's closing price of $116.96 on August 23, Friday.

Onyx had rejected a $120 a share offer from Amgen in June, referring the proposal as "significantly undervalued." The company had then started looking for other potential acquirers, with Pfizer Inc. (PFE), Bristol-Myers Squibb Co. (BMY), Gilead Sciences Inc. (GILD) and Novartis AG said to have expressed interest.

Amgen would gain the full rights of Kyprolis, the newly approved multiple myeloma drug, with the acquisition of Onyx. Market analysts expects Kyprolis to generate annual sales in between $2 billion and $3 billion in few years. Onyx had generated revenues of about $362.2 million in 2012, driven mainly by Nexavar, the liver and kidney cancer drug, which it sells in partnership with Germany's Bayer AG.

According to people familiar with the news, Amgen had previously offered $130 per share in cash for Onyx, however both companies settled on a lower price, as a dispute arose after Amgen sought data related to the Kyprolis.

Drugmakers usually don't have full data of ongoing trials, which are only available with the Data and Safety Monitoring Board which oversees these trials. Amgen had sought the data to better evaluate the treatment. The company sees its as a standard due diligence matter and believes sharing it will not impact the study. However, Onyx was reluctant to share data on concerns that it would affect the study and slow the approval process.

ONXX closed Friday's trading at $116.96, down $0.63 or 0.54%, on the Nasdaq. The stock is currently up $1.04 or 0.89% in after-hours trade.

AMGN closed Friday's trading $105.60, down $0.69 or 0.65%, on the Nasdaq. The stock is currently up $0.12 or 0.11% in after-hours trade.