As per an announcement made Monday by Onyx Pharmaceuticals Inc, the company is mulling to purchase drug developer Proteolix Inc; a deal which can cost the former a huge sum of $851 million.

Following the announcement, a hike was noticed in Onyx shares by 1.08, or 4 percent, to $27.98 in morning trading.

Onyx is to pay 276 million upfront for the privately held South San Francisco company, and will gain Proteolix's cancer drug candidate carfilzomib, (which is being tested as a treatment for multiple myeloma, non-Hodgkin lymphoma, and solid tumors), in the process.
 
The creation of the drugs was done to initiate cancer cell death with minimal damage to the rest of the patient's body.

If in case carfilzomib reaches a development milestone, another $40 million would be paid by Onyx, of South San Francisco next year. It will be paying an additional $535 million if carfilzomib is approved in the U.S. and Europe.

"That includes a $170 million payment if the Food and Drug Administration decides to conduct a fast review of the drug," said a source. 

It is in the Q4 when the deal might close. Onyx produces the liver and kidney cancer drug Nexavar, and it hopes the purchase will aid it widen into blood cancers.