Replies to post #84953 on Biotech Values

[DewDiligence]

ONXX:

Why buy the company outright rather than set up a development collaboration? The purchase pretty much reads like a collaboration, and the other assets are quite immature and unlikely to be deal drivers.

Perhaps the BoD thought the buyout was a defense against ONXX getting bought out itself.

[genisi]

On carfilzomib - I can see why Onyx is optimistic about it as its activity in heavily pretreated MM patients looks decent and adverse events are acceptable (especially since peripheral neuropathy is low grade).

[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?

micro