Onyx (ONXX) Gets Acquired for $125 a share

Amgen Inc. (AMGN) has agreed to pay $10.4 billion in cash to acquire Onyx Pharmaceuticals Inc. (ONXX), the companies said in a statement late Sunday.

Under terms of the agreement, Amgen will pay $125 per share for Onyx, a 4.2% increase from the $120 a share it offered in June. At $125, ONXX is selling for more than 4x the price it traded roughly five years ago.

The boards of both companies said they have unanimously approved the deal, which Amgen expects to close at the beginning of the fourth quarter, subject to regulatory approval. According to data from S&P’s Capital IQ, the acquisition represents the fifth-largest biotechnology deal in history.

“We believe that Amgen is ideally suited to realize the full potential of Onyx’s portfolio and pipeline for the benefit of physicians and patients,” Robert A. Bradway, chief executive of Amgen, based in Thousand Oaks, Calif., said in a statement Sunday. According to Bradway, the “acquisition of Onyx follows a thorough due diligence process and is fully consistent with [Amgen’s] strategy of advancing innovative medicines that address serious unmet medical needs.” Bradway believes the acquisition will “accelerate growth and enhance value for Amgen shareholders.”

On Friday, shares of Onyx closed at $119.96; Amgen closed at $105.60.

The deal is expected to be accretive to Amgen’s revenue growth and adjusted net income in FY 2015.

Be the first to comment

Leave a Reply

Your email address will not be published.


*