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Onyx Pharmaceuticals to acquire private biopharmaceutical firm Proteolix Inc for $276 million

By Bettina Padurano for CEOWORLD Magazine Updated:October 13, 2009

Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) (ONXX.O) has agreed to buy Proteolix Inc. for $276 million in cash.

Proteolix is focused on discovering and developing novel therapies that target the proteasome for the treatment of hematological malignancies and solid tumors.

The company’s lead compound, carfilzomib, is a proteasome inhibitor currently in multiple clinical trials, including an advanced Phase 2b clinical trial for patients with relapsed and refractory multiple myeloma.

Onyx said it will pay a further $40 million in 2010 based on the achievement of a development milestone. In addition, it will pay up to another $535 million contingent on the achievement of certain U.S. and European regulatory approvals for carfilzomib, a proteasome inhibitor, which is Proteolix’s lead compound and is currently in multiple trials. The deal is expected to close in the fourth quarter of 2009.

Under the terms of the transaction, Onyx will make a $276 million cash payment upon closing of the transaction. Additional payments include $40 million payable in 2010 based on the achievement of a development milestone and up to $535 million contingent upon the achievement of anticipated approvals for carfilzomib in the U.S. and Europe. Of the potential $535 million, a payment of $170 million is based upon the achievement of accelerated U.S. Food and Drug Administration approval. The transaction is expected to close in the fourth quarter of 2009, subject to the receipt of clearance under the Hart-Scott-Rodino Act and customary closing conditions.

Proteolix is a leader in developing therapeutics that inhibit the cellular proteasome, a validated and well-characterized approach to treating certain hematologic cancers. Carfilzomib is the first in a new class of selective and irreversible proteasome inhibitors. To date, carfilzomib has demonstrated strong response rates in multiple studies and a potentially more tolerable safety profile than currently approved agents. An ongoing accelerated approval Phase 2b trial in patients with relapsed and refractory multiple myeloma is expected to complete enrollment in 2009 with data anticipated in the second half of 2010.

Carfilzomib is also being evaluated in a companion Phase 2 trial in relapsed multiple myeloma. A Phase 3 trial evaluating carfilzomib in combination with lenalidomide and dexamethasone as a potential treatment option for patients with multiple myeloma is expected to begin in 2010. Carfilzomib is also being evaluated in a Phase 1b/2 study for solid tumor cancers. In addition, Proteolix has discovered additional next-generation proteasome inhibitors to which it holds worldwide development and commercialization rights, including an oral proteasome inhibitor and a selective immunoproteasome inhibitor.

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