Investopedia: Amgen Puts Onyx Pharmaceuticals In Play

Funny how an unsolicited bid will suddenly alert Wall Street to the value of a strong biotech.

While Onyx Pharmaceuticals (Nasdaq:ONXX) was generally a pretty well-regarded biotech, the news over the weekend that Amgen (Nasdaq:AMNG) had made a bid, and that management was now soliciting higher offers, has sent the shares rocketing up in pre-market trade. Given its solid collection of oncology/hematology assets, it won't be surprising if Onyx draws a crowd to its bargaining table before declaring a winner.

Good Reporting Triggers A New Era
Financial Post's Barry Critchley offered quite the scoop late Friday when he reported seeing a letter wherein Amgen made a formal bid for Onyx in the amount of $8.7 billion or $120/share. Onyx ultimately acknowledged the bid, but declared it insufficient and that the company was now going to begin an active sales process. To that end, it's worth noting that Onyx's press release acknowledging Amgen's bid made it clear that the company has received other indications of interest.

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