It’s a done deal, Amgen acquires Onyx

In Partnering & Investment by Tim PeplowLeave a Comment

amgen onyx acquire

After several weeks of speculation, Amgen has finally struck a deal to acquire Onyx Pharmaceuticals. And the final price? Roughly $10.4 billion.

Amgen’s purchase of the Kyprolis manufacturer will strengthen its position in the cancer market, and will help bolster Amgen’s defence against an expected decline in revenue over the coming years. For Amgen, “it’s an important steppingstone to solve a structural problem, which is post-2015 Amgen revenue and earnings growth in the face of biosimilar erosion,” said Credit Suisse analyst Ravi Mehortra.

Onyx’s orphan drug Kyprolis, which gained US approval last year for the treatment of multiple myeloma, was the keystone in the deal. Although a number of risks still exist with the drug, including whether it wins wider approvals for use, Kyprolis is touted to notch $1 billion in sales by 2015. “Our confidence [in Kyprolis] is reflected in the price that we’ve moved forward the transaction with,” said Amgen Chairman and Chief Executive Robert Bradway.

Read more at Wall Street Journal >

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