Two months after being turned away, biotech giant Amgen Inc. said it has reached a $10.4-billion deal for cancer drug maker Onyx Pharmaceuticals Inc.
Amgen will pay $125 per share for the outstanding shares of Onyx, the two companies said Sunday.
In June, Amgen made an unsolicited offer of $120 a share for Onyx, which is prized for its Kyprolis drug designed to fight blood cancers. Onyx rejected Amgen's initial proposal and started fielding offers from other drug companies.
The all-cash deal represents a 44% premium to Onyx's closing price of $86.82 on June 28, before Amgen's initial proposal became public.
“We believe that Amgen is strongly positioned to realize the full potential of Onyx’s portfolio and pipeline for the benefit of physicians and patients," said Robert A. Bradway, Amgen's chairman and chief executive.
"Amgen has a unique opportunity to add value to Kyprolis, a product which is at an early and promising stage of its launch,” Bradway added.
Amgen's top-selling products include arthritis medication Enbrel, osteoporosis drug Prolia and anemia medicines Aranesp and Epogen. The company had annual revenue of $17.3 billion in 2012 and net income of $4.3 billion.
Last year, Onyx, based in South San Francisco, Calif., had revenue of $362.2 million and a net loss of $187.8 million.
The company's Kyprolis drug has been approved by the U.S. Food and Drug Administration for multiple-myeloma patients who have received two other prior treatments.
The drug is undergoing clinical trials in Europe as Onyx tries to win broader marketing approval.
Shares of Onyx closed Friday at $116.96. Amgen shares were off slightly Friday at $105.60.
Like other big drug companies, Amgen has been on the hunt for promising new products that could become blockbusters while sales growth slows for some of its core drugs.
Amgen said it expected the Onyx deal to close later this year, subject to regulatory approvals.
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