Biotech Values

[microcapfun]

Onyx / Proteolix

For some time I thought an oncology acquisition made a lot of sense for Onyx, which has a U.S. sales force selling only one product (Nexavar), approved for kidney and liver cancer. Leveraging that sales force would mean a lot more bang for the buck - a great business synergy.

One problem though ... It is most likely that carfilzomib (if approved) will be used primarily or exclusively to treat blood cancers. In that case, the sales force has to start knocking on hematologists' doors and attending ASH in addition to ASCO. And obviously hepatologists will not be prescribing carfilzomib ...

So is there much synergy in such an acquisition, or is it just a way for Coles to make the company - and himself - bigger?

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