Onyx Pharmaceuticals Inc (ONXX)

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AP
Onyx Pharma Swings to 3Q Profit
Tuesday November 6, 6:26 pm ET
Onyx Pharmaceuticals Swings to 3rd-Quarter Profit As Loss From Operations Narrow

EMERYVILLE, Calif. (AP) -- Biotechnology company Onyx Pharmaceuticals Inc. Tuesday said it swung to a profit in the third quarter, as its loss from operations narrowed, and sales of its cancer drug Nexavar drug rose.

The company earned $555,000, or a penny per share, compared with a loss of $20.1 million, or 49 cents per share, in the same quarter a year ago.

The company didn't record revenue in the third quarter. Onyx's revenue totaled $100,000 in the year-ago quarter.

Analysts polled by Thomson Financial expected a loss of 21 cents per share, on revenue of $9.6 million.

Sales for Onyx's anticancer drug Nexavar more than doubled to $104.6 million for the quarter. Bayer Pharmaceuticals Inc. recognizes all revenue from the drug as part of a partnership agreement. Bayer markets and develops Nexavar, which is approved for the treatment of advanced kidney cancer in the U.S., European Union and other territories internationally.

In the third quarter, Onyx reported a net expense amount due from Bayer of $17.6 million, as part of its unconsolidated joint business for Nexavar. The two companies share the drug's expenses.

In the year-earlier period, Onyx owed Bayer a net amount of $3.6 million. Onyx said the change was primarily due to an increase in Nexavar revenue recognized by Bayer that was partially offset by higher combined commercial expenses for the drug.

Loss from operations declined to $5.5 million from $23 million in the third quarter of 2006.

Shares of Onyx rose $1.19, or 2.5 percent, to close at $49.35.

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