Amgen appears close to bagging its biotech prey. After starting out with a $120-a-share offer for Onyx, the giant biopharma company appears to have settled on a final price of $125 a share, according to news reports Saturday. And a deal is expected as early as Monday.
Quoting sources, Bloomberg says that Amgen is now pushing for a lower price after Onyx refused to hand over data from an ongoing study of the blood-cancer drug Kyprolis needed for European approval--countering an piece from Reuters Wednesday evening claiming that the issue had been defused.
A last-minute roadblock to an Onyx buyout has apparently been dismantled. Citing sources, Reuters says that the big biotech has handed over data from an ongoing study of its cancer drug Kyprolis. And ISI's Mark Schoenebaum, for one, is breathing a sigh of relief, hopeful that a deal can be completed in days.
Most recently Bristol-Myers Squibb was reportedly interested in a buyout. Under new CEO Flemming Ornskov, Shire has been buying up small drug developers, with an eye to grabbing some more rare disease drugs ahead.
PricewaterhouseCoopers has been running the numbers on deals and dollars in the biopharma industry. And the big accounting firm is echoing a growing lineup of analysts who see that dealmaking in the industry is suffering even as IPOs are booming. But easy access to cash could change things around dramatically in the second half of this year.
After some heavy deal flow in the first three months of 2013, the second quarter showed a 40% slide in deal volume compared with the previous one.
As sources tell Bloomberg, the companies have been stalled in their talks over Amgen's proposed $130-per-share acquisition of Onyx because Amgen wants data from an ongoing trial for European approval of the blood-cancer drug Kyprolis.
Looking over the 416 licensing deals EvaluatePharma tracked for the first six months of the year, total upfronts and deal values for Phase II programs were well ahead of Phase III--as well as the pace set for mid-stage pacts in the first half of 2012.
Silicon Valley Bank has been crunching the numbers on biotech launches and M&A deals reaching back 8 years, concluding that there's been a recent shift in the disease focus of companies getting funded in Series A rounds, while M&A deals surged over the past two years as upfront payments dwindled.
Novartis Chairman Joerg Reinhardt tells Bloomberg that the pharma giant is ready to pull the trigger on new acquisitions for up to $10 billion--but Onyx evidently is not on the short list of targets.