October 13, 2009 (FinancialWire) — Onyx Pharmaceuticals, Inc. (NASDAQ: ONXX) said it has signed a definitive agreement to acquire Proteolix, Inc., a privately held biopharmaceutical firm for an initial cash payment of 276 million plus expected earnout payments, for a total of up to $535 million.

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.

N. Anthony Coles, president and chief executive officer of Onyx, said that the deal, “leverages Onyx’s proven expertise in developing and commercializing Nexavar and provides strategic expansion into the $16 billion hematological malignancies market.”

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 certain regulatory 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 scheduled to close in the fourth quarter of 2009, subject to the receipt of clearance under the Hart-Scott-Rodino Act and customary closing conditions.

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