Onyx All Set To Acquire Proteolix

Onyx Pharmaceuticals (Onyx) has signed an agreement to acquire Proteolix, a biopharmaceutical company focused on novel therapies that target the proteasome for the treatment of hematological malignancies and solid tumors. Proteolix’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.

Under the terms of the transaction, Onyx will make a $276m cash payment upon closing of the transaction. Additional payments include $40m payable in 2010 based on the achievement of a development milestone and up to $535m contingent, upon the achievement of certain regulatory approvals for carfilzomib in the US and Europe.

Reportedly, of $535m, a payment of $170m is based upon the achievement of accelerated FDA 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.

Anthony Coles, president and CEO of Onyx, said: “Carfilzomib is a next generation product candidate with a proven and well-validated mechanism of action, strong efficacy signals, demonstrated tolerability and a potential accelerated approval pathway.”

Todd Yancey, vice president of clinical development at Onyx, said: “There is a tremendous need for new agents in multiple myeloma that can extend and improve the lives of patients and be used in combination with existing therapies. Current therapies are limited by serious side effects, particularly neurotoxicity, as well as limited duration of response and resistance. We look forward to the presentation of important new data on carfilzomib at the American Society of Hematology meeting in December and the release of topline data from the phase 2b trial in the second half of 2010.”