John, 2 weeks ago ONXX also went down to 87 and came back. I did not buy more (I've 20.4k shares already), but I've sold some 85 & 80 puts and hope to keep the premium...And, yes, a lot of bio went down today (besides my little gem CLDX), so, the bottom line: this was not ONXX fundamentals related, and we'll get to 110 (my short term target) sooner or later!
According to shortanalytics, this was being heavily shorted Friday, whether in anticipation of weak results in the Nexavar thyroid cancer trail or hoping to #$%$ those who bought in anticipation of a pop, I don't know. In any event, the shortsellers had deep pockets since they pounded this hard all day. I bought more shares at an average price of 89.60 and sold them back to them at just under 93. (You have to try and punish these guys if you can.) Obviously, all of the biopharms got attacked today - even CELG and GILD were sharply lower. I noted an inaccurate story which attributed ONXX's weakness to the fact that the Nexavar trial didn't show a benefit in OS. Actually, my understanding was that the trial hadn't run long enough to establish OS. It seems to me (without being a statistics maven) that the trial indicates that Nexavar works really well for some patients, and since these folks have few alternatives, I would expect it to be approved for this indication. If they attack this again tomorrow, I will buy more.
I believe the story was accurate - WSJ and a number of other sources noted that overall survival was not improved, but it did nearly double the length of progression-free survival. Overall I believe the news is net positive, especially since this may be the first new therapy approved in 40 years.
PS The word in my text which Yahoo! expurgated was "sp--k" (meaning either "ghost" or, in this case, "scare"). I don't know how all those people on the Ford board manage to post racist garbage with Yahoo!'s silly vigilance.