Amgen’s $125 Per Share Offer For Onyx Reflects Kyprolis Uncertainty
This article was originally published in The Pink Sheet Daily
Amgen will acquire the cancer company Onyx for $125 per share, or $10.4 billion. That's higher than the $120 per share Amgen originally offered, but less than some investors and analysts thought obtainable.
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Earn-outs and other deal tools help bridge value gaps and share risk, enabling more deals to be finalized, report says. However, pharma is seeing increased M&A competition from biotechs looking to diversify and increase scale.
Q2 2013 biopharma financing increased 139% to $11 billion over Q1’s $4.6 billion, thanks mostly to two huge transactions by Valeant to fund its $8.7 billion takeover of ophthalmics player Bausch & Lomb, the company’s largest acquisition to date. Options and antibody-drug conjugates featured prominently in the alliances.
The fast-growing biotech is soliciting bids, after a rejected Amgen offer and additional third party interest. Wall Street is scrambling to determine how to value Onyx and who the bidders could be.