Onyx Pharma set to buy Proteolix for up to $851M

Onyx Pharmaceuticals, developer of treatments for liver and late-stage kidney cancer, has moved to acquire Proteolix, provider of a technology that can accelerate the death of cancer cells, for as much as $851 million. Emeryville, Calif.-based Onyx says it wants to incorporate this component, which has proved less toxic and more effective in patients, into its current offerings.

When the deal closes, South San Francisco-based Proteolix will receive $276 million in cash, with the option of bringing in $575 million in additional payments with the achievement of various milestones. Previously, it raised a sizable amount of capital — including $79 million in a third round of funding last year — from Advanced Technology Ventures, Delphi Ventures, Latterell Venture Partners, Nomura Phase4 Ventures, U.S. Venture Partners, Westfield Capital Management and Vertical Group.

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