Los Angeles Business Journal

Amgen Reportedly Raises Bid for Onyx

By Business Journal Staff Wednesday, August 7, 2013

Amgen Inc. may finally acquire Onyx Inc. after the Thousand Oaks company raised its bid for the cancer drug developer, according to media reports.

Amgen has increased its bid to $130 a share, an 8 percent increase from its previous offer of $120, according to a Bloomberg New report on Tuesday. And Reuters on Wednesday reported the companies were negotiating a final deal that may be announced within a week. Both reports were based on anonymous sources.

A $130 buyout price would put the total acquisition cost at roughly $9.5 billion.

Based in South San Francisco, Onyx makes Nexavar, a treatment for liver and kidney cancer that has global sales topping $1 billion. The proceeds are shared with German pharmaceutical company Bayer AG. It also makes Stivarga, a new colon cancer drug.

Onyx first announced it had received a buyout offer from Amgen on June 30. Its board rejected the $120 offer, saying the price significantly undervalued the company, even though it was a 38 percent premium to the previous closing price. Shares of Onyx quickly spiked above $120.

Shares of Amgen gained $7.18 cents, or 6.8 percent, to close at $112.40 on Wednesday. Shares of Onyx lost $3.81, or 2.8 percent, to $128.21. Both issues trade on the Nasdaq.