Onyx Pharmaceuticals Inc. (ONXX) agreed to acquire privately
held Proteolix Inc. for up to $810 million, giving Onyx a foothold
in the $16 billion hematological malignancies market.
Biopharmaceutical company Proteolix's drug candidate
carfilzomib, which targets hematological malignancies and tumors,
is in multiple clinical trials - including an advanced midstage
trial for patients with relapses and refractory multiple
myeloma.
Under the deal, Onxy will pay $275 million in cash when the
transaction closes, which expected in the current quarter. It also
agreed to pay an additional $40 million next year if the drug
reaches a development milestone and up to $535 million if it
receives regulatory approvals in the U.S. and Europe. Of the $535
million, about $170 million requires the drug candidate to receive
accelerated approval.
Like many drug development companies, Onyx has struggled to be
profitable.
Onyx plans to present new data on carfilzomib at the American
Society of Hematology meeting in December and release data from the
midstage trials during the second half of next year.
The deal comes after Onyx's cancer therapy Nexavar missed its
main goal in a Phase II trial in breast cancer last month. Onyx and
partner Bayer AG (BAYRY, BAYN.XE) reported a "positive trend"
towards improvement in progression-free survival and patients will
be followed to determine any overall survival benefit.
Shares closed at $26.90 on Friday and didn't trade premarket.
The stock is down 20% this year.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
Tess.Stynes@dowjones.com;