Onyx accepted Amgen's offer of $125 per share in an all cash deal which will now be tendered to Onyx shareholders. The deal is valued at $10.4B at a 43.7% premium over the Onyx share price on the day Amgen made its initial $120 per share offer. The final price is $5 per share higher than the initial offer but $5 per share lower than Amgen's purported $130 per share offer before visibility to clinical data on Kyprolis became an issue.
Onyx's Ceo, Tony Coles, thus brought home the bacon to Onyx shareholders by greatly increasing the company's worth both through the acquisition of Proteolix (specifically gaining control of Kyprolis), and by consumating the Amgen deal. Amgen management is happy. Onyx management and shareholders are happy. Now lets see how amgen manages the integration and grows sales of Onyx pipeline assets it wanted for its own. We'll also have to wait to see the employees' fate post-acquisition. It is unlikely that there is any free lunch with an acquisition of this size. See Fierce Biotech and Xconomy.
Posted by Bruce Lehr Aug 26th 2013.