Onyx Pharmaceuticals Inc (ONXX)

[chmcnfunds]

Onyx Seeks Other Bidders After Rejecting Amgen Proposal

June 30, 2013, 2:27 p.m. ET

By Joseph Walker and George Stahl

Onyx Pharmaceuticals Inc. (ONXX) said it is now seeking potential buyers after rejecting an unsolicited acquisition proposal from Amgen Inc. (AMGN) that valued the maker of cancer drugs at more than $8.7 billion.

Onyx said in a statement Sunday that Amgen's offer "significantly undervalued Onyx and its prospects, and was not in the best interest of Onyx or its shareholders." Amgen's bid valued Onyx at $120 a share, or about 38% higher than its closing price Friday of $86.82.

As a result of Amgen's interest, Onyx's board has authorized its financial adviser to contact potential acquirers who may have an interest in the company. An Amgen representative wasn't immediately available.

"Onyx has tremendous momentum and, with the expansion of our pipeline and two successful product launches," said Dr. N. Anthony Coles, chairman and chief executive, in the statement. "We are actively exploring the potential to combine Onyx with another company as an option to create additional value for Onyx shareholders."

Over the past 12 months, Onyx shares have traded between $63 and $101.57. Onyx's value has grown since the approval of its blood-cancer drug Kyprolis last summer and on encouraging results regarding Nexavar for thyroid cancer.

Earlier this month, Onyx said Nexavar helped to nearly double the number of months that patients with a rare type of advanced thyroid cancer lived without their diseases worsening. Patients with treatment-resistant thyroid tumors have no other treatment options, study investigators said at the time, and if Nexavar is approved it would be the first new drug for this type of thyroid cancer in 40 years.

Bayer AG (BAYRY, BAYN.XE) is Onyx's partner on Nexavar.

Centerview Partners LLC is acting as financial adviser to Onyx, and Goodwin Procter LLP is acting as legal adviser.

Write to Joseph Walker at [e-mail] and George Stahl at [e-mail]
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