By John Kell
Onyx Pharmaceuticals Inc.'s (ONXX) second-quarter loss narrowed
as the cancer drug maker's sales more than doubled from a year ago,
helping results modestly exceed Wall Street expectations.
The results were likely to draw high interest from Wall Street
observers, as takeout speculation has long swirled around the
company, which in June rejected an unsolicited bid from Amgen Inc.
(AMGN) that valued Onyx at $120 a share.
Onyx is attractive to potential acquirers because the company's
blood-cancer drug Kyprolis is already on the market and expected to
become a blockbuster. Net sales of Kyprolis totaled $61 million in
the second quarter, slightly decelerating from the prior quarter's
$64 million total.
Analysts expect the drug's annual sales to reach more than $280
million this year and top $1 billion by the end of 2016. Because of
Kyprolis's expected growth and its relatively long patent life,
which goes to 2025, analysts see many acquirers being interested in
Onyx.
Media reports this week speculated Amgen is close to finalizing
a deal to buy Onyx. But, in the company's second-quarter press
release, Onyx didn't address the buyout chatter.
Overall, Onyx reported a loss of $53.2 million, or 73 cents a
share, compared with a prior-year loss of $106 million, or $1.65 a
share. Excluding stock-based compensation and other impacts, the
adjusted loss narrowed to 40 cents from 68 cents.
Revenue more than doubled to $153 million.
Analysts surveyed by Thomson Reuters expected a 42-cent
per-share loss on $152 million in revenue.
Operating expenses grew 12% to $200.6 million.
Shares of Onyx, inactive in after-hours trading, have jumped
roughly 69% in 2013. On Thursday, they lost 0.62% to close at
$127.42.
Write to John Kell at john.kell@wsj.com
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