NEW YORK (AP) -- Shares of Onyx Pharmaceuticals Inc. climbed Tuesday after Jefferies & Co. suggested that early sales of a cancer drug could be much stronger than expected.
THE SPARK: Analyst Biren Amin had expected sales of Kyprolis to reach $151 million in 2013. After a survey of 52 hematologists and oncologists, however, Amin said sales could total $290 million or more in 2013 and $480 million in 2014.
Kyprolis works as well as Velcade, Amin said, a similar multiple myeloma drug, and appears to have fewer side effects. He maintained a "Buy" rating on shares of Onyx with a price target of $101 per share.
THE BIG PICTURE: Kyprolis is an injectable drug approved as a treatment for multiple myeloma, a type of cancer that causes tumors to grow in the bone marrow, preventing the production of normal blood cells. The FDA approved Kyprolis on July 20, allowing Onyx to market it for use in patients who have already been treated with at least two other multiple myeloma drugs, including Velcade and thalidomide.
SHARE ACTION: Shares of the South San Francisco, Calif., company rose $3.62, or 5.3 percent, to $71.42 in afternoon trading. Onyx shares have traded between $29.24 and $79.20 in the last 12 months. Amin's target price is 49 percent higher than the latest closing price of Onyx shares.