Monday, December 2, 2013

Amgen Moves into Cancer Treatment with Purchase of Onyx

New York City-based biotech financier Lindsay Rosenwald, MD, possesses over 20 years of experience in investing in health care and life sciences companies. In 2008, Lindsay Rosenwald co-founded Opus Point Partners to create a premier investment fund focused on biotechnology.

After several months of discussion, Amgen Inc. agreed to buy Onyx Pharmaceuticals Inc. in a transaction valued at $10.4 billion. The deal will bolster Amgen's product line with Onyx's slate of cancer-fighting drugs, including Kyprolis, a treatment for a form of blood cancer. Until this acquisition, Amgen had mainly produced drugs aimed at supporting rather than treating cancer patients. Because the population is aging and the oncology market is expected to grow as a result, Amgen's purchase of Onyx is widely considered a sound, forward-looking move.

This buyout is the latest in a pharmaceuticals industry in which numerous established firms have sufficient cash on hand to acquire smaller companies. From an investment perspective, this market environment offers many opportunities for investors in small, innovative companies to see their stakes rise dramatically in value as larger firms seek to enhance their product portfolios.

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