Onyx Pharmaceuticals Update : Sold

ONXX : NASDAQ : US$124.70

Onyx Pharmaceuticals is a company devoted to the development of novel oncology therapeutics.
All amounts in US$ unless otherwise noted.

Life Sciences — Biotechnology
We are terminating coverage of Onyx Pharmaceuticals upon the completion of Amgen’s acquisition of the company for $125/share (aggregate purchase price $9.7B net of Onyx’s cash), a 44% premium to Onyx’s closing price on June 28 (prior to disclosure of Amgen’s initial offer) and a 7% premium to the closing price prior to announcement of the final deal.
Onyx’s key value driver is Kyprolis, a commercially-available proteasome inhibitor approved in the U.S. for relapsed / refractory multiple myeloma. Other assets include Nexavar (partnered with Bayer) for treatment of hepatocellular carcinoma, renal cell carcinoma and other solid tumors; Stivarga (partnered with Bayer) for treatment of colorectal cancer and gastrointestinal stromal tumors, and palbociclib (partnered with Pfizer) for treatment of breast cancer.
Onyx recently reported Q2 Kyprolis sales of $61.0M on >40% market share in the eligible third-line patient population, 10% in the second-line and no front-line use.
Our final rating on the shares was BUY. Given the acquisition of the company, our prior estimates should no longer be relied on


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