Onyx Pharmaceuticals, Inc. (NASDAQ: ONXX) was already on the radar screens in biotech before this morning. But news showing that the company’s cancer drug carfilzomib has received favorable FDA panel vote has shares surging. The vote was 11-to-1 in favor of recommending approval.
Investors need to keep in mind that a final decision is expected by the end of July, and the FDA drug approval process does not always follow the opinion and guidance of the panels.
The company generated sales of $447 million in 2011 and Thomson Reuters is looking for $299.3 million in sales in 2012 and $348 million in sales in 2013. Unfortunately it is expected to post a loss in both years.
Onyx opened up at $61.46 and the stock is now up 37% at $61.15 right after the open with more than 5 million shares having traded hands. The prior 52-week range was $27.17 to $47.80 and the market cap is now $2.9 billion.
Watch the options trading in the July and August contracts as the trading has been very elevated of late.
JON C. OGG