Onyx (ONXX) $130 Takeout Would Not Reflect Oprozomib Potential; Brean Reiterates Buy
August 19, 2013 4:52 PM EDT
Onyx Pharmaceuticals (NASDAQ: ONXX) stock declined recently on reports that potential suitor Amgen (Nasdaq: AMGN) may delay its bid. Analyst Gene Mack of Brean thinks the sell-off is a buying opportunity since, in his view, Amgen's $130 rumored bid does not include the potential for Oprozomib.
"We believe the overall market is still confident that a deal will take place," said Mack.
"Prior to ONXX 2Q13 Results conference call, we spoke to several holders asking them if they would rather delay until ASPIRE data readout before accepting an AMGN bid . . . The overwhelming reaction to our question from ONXX holders was that they wanted to take the bid now since most felt positive ASPIRE data was baked into the $130 share price. We argue that $130 DOES NOT reflect the potential for Oprozomib," he said.
Brean Capital today maintained a Buy rating on Onyx Pharmaceuticals (NASDAQ: ONXX) with a price target of $160.00.