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Dealtalk: Pfizer backs off from Onyx bid

Posted on 23 July 2013

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Pfizer decided not to pursue a bid for Onyx Pharmaceuticals this week, according to two people familiar with the matter, leaving Amgen in the front position to buy the cancer drugmaker.

Shares of Onyx closed down 3.3 percent at $128.55 on Thursday, their lowest level since it announced a sale process on June 30 and valuing the South San Francisco, California-based company at around $9.3 billion.

Onyx, which rejected Amgen's $120 per share bid and instead put itself up for sale, was expecting to receive first-round offers from a few interested parties as soon as this week, people familiar with the matter previously told Reuters.

Pfizer, among the drugmakers that have been evaluating a bid as recently as a few days ago, has decided not to move forward, mainly on concerns that Onyx has become too expensive after a recent run-up in its share price, the people said on Thursday.

The sources asked not to be named because details of the auction are not public. Pfizer, Onyx and Amgen declined to comment.

A few other drugmakers that showed interest, such as Gilead Sciences Inc, Bristol-Myers Squibb Co and AstraZeneca Plc, have also been deterred by price, the people familiar with the matter said, though the companies' latest position could not be confirmed as of Thursday.

Gilead and AstraZeneca declined to comment. Bristol-Myers did not respond to requests for comment.

Read the full article at Reuters

 

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