July 1 - Cancer drugmaker Onyx Pharmaceutical is rejecting a $10 billion takeover offer from Amgen- saying while it will sell- it's worth more. Bobbi Rebell reports.
Shares of Onyx Pharmaceutical soaring after it received- and rejected a $10 billion takeover offer from biotech Amgen. Its shares were already up 31 percent over the past 12 months. Onyx says Amgen's offer of $120 a share is too low. That offer represents a premium of 38 percent based on Onyx's closing price on Friday. And Onyx may have a point. Deutsche Bank analyst Robin Karnauskas says in a note: "From our M&A valuation, we expect higher bids for Onyx of at least $140." The company says it is actively exploring a merger partner- and that other parties have expressed interest. Onyx sells drugs to treat liver and kidney cancers, as well as a colon cancer drug in partnership with Germany's Bayer. It also launched a blood cancer drug last year. For Amgen, buying Onyx would help boost its product pipeline for cancer and anemia drugs.