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.
Continue reading here:
http://www.investopedia.com/stock-analysis/070213/amgen-puts-onyx-pharmaceuticals-play-onxx-amgn-celg-bmy.aspx
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