Onyx Pharmaceuticals Inc (ONXX)

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AP
Onyx Pharma Shares Fall on Downgrade
Tuesday October 2, 1:16 pm ET
Onyx Pharma Shares Fall After Bear Stearns Downgrades Stock to 'Peer Perform' on Valuation

NEW YORK (AP) -- Shares of Onyx Pharmaceuticals Inc. declined Tuesday after a Bear Stearns analyst cut his rating on the biopharmaceutical company, saying share valuation is approaching his $45 price target.

Onyx develops and sells therapies to treat cancer. Its key product, Nexavar, is approved in over 50 countries for patients with advanced kidney cancer, and the company is seeking regulatory approval in the United States and Europe for hepatocellular carcinoma, or liver cancer.

In a note to clients, Bear Stearns analyst Akhtar Samad downgraded Onyx to "Peer Perform" from "Outperform," saying that although he expects solid off-label use of Nexavar in hepatocellular carcinoma through 2007 and a strong launch of the drug for that indication in 2008, he thinks short-term upside may be limited for new investors.

The analyst maintained his sales estimates for Nexavar.

Shares of Emeryville, Calif.-based Onyx fell $1.45, or 3.3 percent, to $42.46 in afternoon trading, on lower-than-average volume. The stock has ranged between $10.38 and $45.71 over the past year.