UPDATE 2-Onyx explores possible sale, rejects Amgen offer
(Recasts lead; adds that hired financial advisor, company declines comment)
NEW YORK, June 30 (Reuters) - Onyx Pharmaceuticals Inc said on Sunday it is weighing a sale of the company, after rejecting a roughly $10 billion takeover offer from larger rival Amgen Inc as too low.
The company said the offer price of $120 a share in cash, which represents a premium of about 38 percent to the company's Friday closing price, "significantly undervalued" its prospects.
Onyx said in a statement it was "actively exploring" the possibility of combining with another company, and that it had hired financial advisor Centerview Partners to contact potential buyers. The San Francisco-based company cited "expressions of interest" from Amgen and other unnamed third parties.
An Onyx spokeswoman declined to comment further on the statement.
Onyx has a market cap of $6.32 billion and revenue of $362 million in 2012, while Amgen is the world's largest biotech company, with a market cap of about $74 billion.
The Financial Post reported the offer on Friday, sparking a steep jump in Onyx shares in after-hours trading.
ISI Group analyst Mark Schoenebaum wrote that if a deal were to be made, Onyx's Kyprolis cancer drug would fit well into Amgen's cancer drug sales and marketing infrastructure and complement Amgen's portfolio of cancer drugs.
Kyprolis, developed for patients with multiple myeloma who have received at least two prior therapies, was approved by the Food and Drug Administration last July.
(Editing by Doina Chiacu, Bill Trott and Marguerita Choy)