UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Onyx Pharmaceuticals on Multiple 4Q Positives
In a report published Friday, Bank of America reiterated its Buy rating on Onyx Pharmaceuticals (NASDAQ: ONXX), and slightly raised its price target from $99.00 to $100.00.
Bank of America noted, “There were three positives to ONXX's 4Q report: (1) 4Q Kyprolis sales of $45.3M were ahead of the $43.5M previously preannounced, implying strong new patient starts during the quarter vs. our model. (2) First quarterly Stivarga royalties of $8.2M were well ahead of our $1.2M estimate, and while driven by bolus patients first coming on therapy, shows this product will provide better incremental cashflows than our prior estimates. (3) ONXX disclosed an 8% royalty rate it receives on PFE's exciting new breast cancer drug candidate '991, ahead of midsingle digit % expectations. ONXX gave soft 2013 Kyprolis guidance of steady Q/Q sales growth, which implies at least $190-$200M in annual sales.”
Onyx Pharmaceuticals closed on Thursday at $69.93.
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