Amgen, Inc. (AMGN) and Onyx Pharmaceuticals, Inc. (ONXX): Half a Billion Dollars’ Worth of Drama

Two thumbs up?
Now that the drama has been seen and the credits are rolling, what rating does the Amgen/Onyx deal deserve? I’d give it two thumbs up.

Amgen gets a boost to its product lineup that will soon face some challenges. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is scheduled to begin marketing a biosimilar version of Neulasta in the U.S. this November. The Israel-based company already sells a biosimilar that competes against Neupogen in Europe.

Onyx makes for a good fit for Amgen, Inc. (NASDAQ:AMGN)’s oncology business, also. Its previous products focused more on related issues from cancer rather than treating cancer directly. With its pipeline and now Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), however, Amgen is clearly moving in the direction of tackling cancer head-on.

As for Onyx, its shareholders receive huge gains. I’m sure many were hoping that the price tag would have been higher, but $125 per share isn’t bad. Remember the old saying: A bird in the hand is worth two in the bush. There’s no guarantee that any of the other companies that were rumored to be interested would have paid any more than Amgen did.

As I said earlier, this has been a fun drama to watch. Now that it’s over, I’m ready for the sequel.

The article Amgen and Onyx: Half a Billion Dollars’ Worth of Drama originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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