UPDATE: Maxim Group Reiterates Buy Rating, Raises PT on Onyx Pharmaceuticals
In a report published Monday, Maxim Group reiterated its Buy rating on Onyx Pharmaceuticals (NASDAQ: ONXX), and raised its price target from $75.00 to $92.00, related to the recent approval of Onyx's new drug Kyprolis.
Maxim Group noted, “ONXX is ready for the commercial launch of Kyprolis. The company has hired a 100-people sales force, separate from the Nexavar team, which will start calling doctors in August. According to management, the price of Kyprolis is $1,658/60mg vial or $9,950/treatment cycle. Each treatment cycle of Kyprolis takes four weeks and six injections, vs. the competing drug Valcade's (bortezomib) three weeks and four injections. Although management did not give the annual cost per patient or treatment course, we estimate Kyprolis could cost 20%-30% more than Valcade, instead of comparable to Valcade in our prior forecast. Maintaining our prior assumptions of market size and peak penetrations (70% relapsed/refractory treatment and 40% first-line treatment), we derived peak world wide sales of Kyprolis of ~$4B. The revisions support a valuation of ONXX at $83-$105/share.”
Onyx Pharmaceuticals closed on Friday at $76.38.
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