With shares of Onyx Pharmaceuticals (NASDAQ:ONXX) trading around $118, is ONXX an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Onyx Pharmaceuticals is a biopharmaceutical company. The company is developing therapies that target the molecular mechanisms that cause cancer. It has built two franchise platforms: one in kinase inhibition and one in proteasome inhibition. In its kinase inhibitor franchise, its product, Nexavar is approved for unresectable liver cancer and advanced kidney cancer. With its development and marketing partner Bayer, the company shares equally in the profits and losses of Nexavar worldwide, except Japan.
Onyx Pharmaceuticals has reluctantly agreed to give trial data about its new blood cancer drug Kyprolis to suitors interested in the company, including Amgen (NASDAQ:AMGN). Onyx had hesitated on providing data about Kyprolis as tests have not yet been completed. Amgen is in talks to pay $9.5 billion for Onyx. Kyrpolis is seen as a potential blockbuster drug, but it has yet to receive approval from the Food and Drug Administration as phase three trials are not finished.