Dallas, Texas 07/03/2013 (Financialstrend) – Onyx Pharmaceuticals, Inc.(NASDAQ:ONXX) shares currently trading at $134.03, down by 1.17%. The intra-day range of the stock is $133.50 – $135.00. The market capitalization of the company is $9.75 billion.
The allegedly low-ball offer of Amgen to buy Onyx Pharmaceuticals has set off a bidding war between the companies that may help the maker of cancer drugs to obtain a higher offer, thus, leaving biotech behemoth Amgen look like a groom who is left behind at the altar.
An analyst at Bernstein Research, Geoffrey Porges, said that the pharmaceutical companies all around the world are going to covet Onyx Pharmaceuticals Company because the kind of assets Onyx holds, along with potential synergies, are rare.
On Sunday, Onyx Pharmaceuticals confirmed that it received an unsolicited offer of $120 per share by Amgen, namely a $10 billion deal. Kyprolis, a multiple-myeloma treatment drug of Onyx Pharmaceuticals, played a significant role in the deal. Analysts said that this drug, whose sales began last year, can generate annual revenue of approximately $2 billion.
The company said that it has rejected the offer made by Amgen because it significantly undervalued Onyx Pharmaceuticals and its prospects. The company also said that it has authorized Centerview Partners, financial partners, to contact the potential buyers of the company.
The chairman and Chief Executive Officer of the South San Francisco-based company, Dr. Tony Coles, said that the company is actively exploring the possibility to combine Onyx Pharmaceuticals with other companies so as to create additional value to the shareholders of the company. He said that the company has a great momentum and, with the launch of two successful products, along with an expansion of its pipeline, significant value for the shareholders of Onyx Pharmaceuticals shall be created.