Canaccord Keeps Onyx Pharma ONXX) at Buy; Kyprolis Key, But M&A Next Catalyst
11:53 AM ET, 08/09/2013- Street Insider
Canaccord Genuity maintains a Buy rating on Onyx Pharmaceuticals (Nasdaq: ONXX) following strong Q2 results issued Thursday night, continuing to see fair value of $140 on the stock.
Analyst Salveen Richter noted that Kyprolis revenue of $61 million missed consensus views calling for $66 million, though the report excludes about $10 million in accrued defered revenue.
Key catalysts for Onyx are P3 Kyprolis data from ASPIRE (Rev + dex Kyprolis in relapsed MM) and FOCUS ( 3 prior therapies; vs. BSC) now expected in 1H/14 to support label expansion in the U.S. and an E.U. filing in H2/14. Management commented that assumptions on ASPIRE were conservative from the start. Richter says, 006 data at ASCO indicates the CRD arm in ASPIRE may demonstrate median PFS of up to 28.7mo.
Focus is solely on M&A for Onyx, said Richter. During its conference call, Onyx management commented multiple parties are currently engaged in discussion with the company. Canaccord thinks that there will be bidders other than Amgen (Nasdaq: AMGN) stepping up soon. Earlier in the week, it was reported that Amgen came in with $130, which is $10 better than its original offer, but still shy of Canaccord's outlook.
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Shares of Onyx Pharmaceuticals closed at $127.42 yesterday, with a 52 week range of $66.37-$136.87.