Bidding for Onyx Pharma (ONXX) Done? Not Likely...
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Onyx Pharmaceuticals (Nasdaq: ONXX) recently surged on disclosure that Amgen (Nasdaq: AMGN) approachd the company with a $120 per share takeover offer. Despite shares being up 13 percent over the bid and 56 percent since the close last Friday, is more upside in store?
Maybe, according to recent stock action as well as a confident response from Onyx that Amgen's bid "significantly undervalued" the company's prospects for cancer therapies.
Suitors that might be mulling a bid include Bayer, which is partners with Onyx on two drugs already, Novartis (NYSE: NVS), and Bristol-Myers Squibb (NYSE: BMY).
Bloomberg-compiled data puts valuation on Onyx at $130 to $165 in a takeover, meaning up to 18 percent of additional upside in the name.
One of Onyx's key cancer drugs is Kyprolis. The drug is expected to have sales of $257 million this year, moving to $2.3 billion by 2019. Kyprolis is one of the two drugs Onyx partnered with Bayer on.
Gilead Sciences (Nasdaq: GILD) paid a 94 percent premium to acquire Pharmasset, which would put Onyx at $170 per share when applying the percentage to the pre-announcement stock level.
Shares of Onyx are indicated lower early Wednesday.
Maybe, according to recent stock action as well as a confident response from Onyx that Amgen's bid "significantly undervalued" the company's prospects for cancer therapies.
Suitors that might be mulling a bid include Bayer, which is partners with Onyx on two drugs already, Novartis (NYSE: NVS), and Bristol-Myers Squibb (NYSE: BMY).
Bloomberg-compiled data puts valuation on Onyx at $130 to $165 in a takeover, meaning up to 18 percent of additional upside in the name.
One of Onyx's key cancer drugs is Kyprolis. The drug is expected to have sales of $257 million this year, moving to $2.3 billion by 2019. Kyprolis is one of the two drugs Onyx partnered with Bayer on.
Gilead Sciences (Nasdaq: GILD) paid a 94 percent premium to acquire Pharmasset, which would put Onyx at $170 per share when applying the percentage to the pre-announcement stock level.
Shares of Onyx are indicated lower early Wednesday.
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