UPDATE: Morgan Stanley Upgrades Onyx Pharmaceuticals
Morgan Stanley has upgraded Onyx Pharmaceuticals (NASDAQ: ONXX) from Underweight to Equal-weight and has removed its $39 price target based on a high probability for the approval of Kyprolis.
In the report, Morgan Stanley writes, "Central to our cautious thesis was the lack of compelling positive catalysts for ONXX. Now, a high probability of a 2012 Kyprolis approval and launch after a positive FDA advisory process provides a clear positive driver. Thus, we are upgrading to Equal-weight from Underweight. Our relative Underweight thesis assumed that Kyprolis would not receive accelerated approval with few other likely positive drivers for Onyx. However, a positive panel vote and supportive FDA commentary suggest a high probability of FDA approval around the July 27th PDUFA date creating a clear driver for the stock contrary to our previous thesis."
Onyx Pharmaceuticals is currently trading up 43.16% from yesterday's $44.56 closing price.
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