Onyx Pharmaceuticals (ONXX)

Onyx Pharmaceuticals, Inc. (ONXX) is engaged in the development of novel cancer therapies that target the molecular basis of cancer. With its collaborator Bayer Healthcare, the company develops the small molecule drug Nexavar (sorafenib).

Nexavar sales in the third qurater of 2008 remained strong. This is mainly attributed to the market penetration in the liver cancer market, while Nexavar market share in kidney cancer market has stabilized due to heavy competition from Pfizer and Wyeth.

We expect continued Nexavar sales growth in 4Q08 and over the next several years since the label has expanded to liver cancer. In addition to the U.S. and E.U., Nexavar has been approved in South Korea and China for liver cancer. Nexavar has the potential to become a blockbuster. We maintain our Buy rating on Onyx shares with a price target of $45 per shares.

Onyx Pharmaceuticals (ONXX) : FULL ANALYST REPORT

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