Onyx Pharmaceuticals, Inc. (ONXX) Bidding Wars: Who Would Be the Best Suitor?

The financials of the company are strong along with the profitability margins, but on future prospects its revenues might get jolted because its best sellers. Neulasta and Neupogen would lose their patent protection by 2015. The company still has not been able to get its drugs related to cancer treatment approved by FDA. I believe Amgen, Inc. (NASDAQ:AMGN) needs Onyx most because its current situation is not attractive.

Final assessment

I think Amgen, Inc. (NASDAQ:AMGN) should reconsider and should offer a better quote to Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX). Onyx has a decent growth potential and would help Amgen in its troubled times. Amgen needs the revenue base of Kyprolis as its main drugs lose patent protections soon. Even though Amgen is still among the better investment options,with the inclusion of Onyx it would manage to remove the stigma placed by investors of being a slow growth company and I would consider Amgen a strong buy if its deal with Onyx materializes.

usman iftikhar has no position in any stocks mentioned. The Motley Fool recommends Celgene and Gilead Sciences (NASDAQ:GILD).

The article Onyx Bidding Wars: Who Would Be the Best Suitor? originally appeared on Fool.com.

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