UPDATE: J.P. Morgan Raises PT on Onyx Pharmaceuticals on Palbo Incorporation
In a report published Thursday, J.P. Morgan analyst Cory Kasimov reiterated an Overweight rating on Onyx Pharmaceuticals (NASDAQ: ONXX), and raised the price target from $100.00 to $105.00.
In the report, Kasimov noted, “We are reiterating our OW rating on ONXX (one of our top picks) and bumping our price target to $105 (from $100) as a result of incorporating palbociclib (palbo, or PD-991) into our valuation. Palbo, which entered into Phase 3 last month, is being developed by Pfizer (PFE; covered by JPM analyst Chris Schott) and has arguably become one of the most talked about drugs in all of clinical development following the highly compelling Phase 2 data presented at the San Antonio Breast Cancer Symposium (SABCS) in Dec. It's unusual for a single pipeline product to become such a focus for a large pharma company like PFE, and yet despite the attractive economics (a flat 8% royalty on sales), palbo is a relatively infrequent topic of conversation re ONXX as investor attention remains overwhelmingly focused on the myeloma drug Kyprolis.”
Onyx Pharmaceuticals closed on Wednesday at $88.53.
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