Amgen Pharmaceuticals is doing what companies do when they snap up a smaller rival: layoffs and a shutdown. But in this case, Amgen is doing it 19 months after the fact. The biotech giant will cut loose 300 staffers at its oncology subsidiary Onyx Pharmaceuticals and shut down Onyx's building in San Francisco.
Workers at an Onyx Pharmaceuticals facility in South San Francisco filed out of the building and into a parking lot Wednesday afternoon after employees reported smelling gas.
Nexavar, the blockbuster cancer drug sold by Bayer and Onyx Pharmaceuticals, has failed again in a trial for a new indication.
Bayer and Onyx Pharmaceuticals' Nexavar has seen a lot of success as a liver cancer treatment, but as an adjuvant therapy for liver cancer, it could be awhile--if ever. On Tuesday, the drug missed its target in a Phase III trial, failing to meet the study's main goal of improving recurrence-free survival.
With the ink on its $10.4 billion deal for Onyx Pharmaceuticals not yet dry, it might have been exepcted to be the only thing Amgen would key on in its third-quarter earnings today.
After closing on its $10 billion Onyx buyout earlier in the week, Amgen has now promoted R&D chief Pablo Cagnoni to the president's office. Cagnoni was only hired back in March but gets about a $3.8 million payday in the deal.
Amgen struck the deal of the summer last month with the $125-per-share buyout of Onyx Pharmaceuticals, and a regulatory document today reports the back-and-forth between the two companies and other parties.
The European Commission has stamped an approval on Stivarga (a.k.a. regorafenib) for aggressive cases of colorectal cancer, marking a regulatory victory for Bayer Healthcare and Onyx Pharmaceuticals ($ONXX). Amgen ($AMGN) benefits, too.
Every time a biotech is bought out, there's always one big question on the minds of every rank-and-file employee not in line for a golden handshake: Will I have a job when the dust settles?
Now that Amgen has wrapped up its deal for Onyx Pharmaceuticals, what will be the fate of Kyprolis, the multiple myeloma drug central to the deal? As goes Kyprolis, in a way, so does the rest of Onyx's operations.