Bernstein Believes Onyx Pharma Bid Would Need to be in $140-150/Share Range to Sufficiently Entice Management

Bernstein analyst Geoffrey Porges believes Onyx Pharma's ONXX rejected $120/share offer from Amgen AMGN suggests a $140-150 range will be necessary to begin "to be viable for management, the board, and investors." Amgen would be able to afford this higher price point according to Porges, though Onyx is exploring other opportunities following the rejection of the initial Amgen offer. Potential scenarios include a defensive merger with a company like Seattle Genetics SGEN, Ariad ARIA, or Incyte INCY. Stocks of the aforementioned companies have all seen gains on the post-Amgen-offer chatter. Bernstein's Porges maintains a Market Perform rating and $109 price target on shares of Onyx Pharma.