Onyx Pharmaceuticals Reports 2008 First Quarter Results
Tuesday May 6, 4:00 pm ET
Nexavar Net Sales increase 149% over First Quarter 2007
EMERYVILLE, Calif., May 6 /PRNewswire-FirstCall/ -- Onyx Pharmaceuticals, Inc. (Nasdaq: ONXX - News) today reported its financial results for the first quarter ended March 31, 2008. Onyx reported net income of $15.4 million, or $0.27 per diluted share, for the first quarter of 2008 compared to a net loss of $12.2 million, or $0.26 per diluted share, in the same period in 2007.
Nexavar net sales as reported by Bayer HealthCare Pharmaceuticals, Inc., or Bayer, were $151.9 million for the first quarter ended March 31, 2008, a 149% increase over the $60.9 million reported in the same period in 2007. Onyx with its collaborator, Bayer, is marketing and developing Nexavar® (sorafenib) tablets, an anticancer therapy currently approved for the treatment of liver cancer and advanced kidney cancer in the United States, European Union, and other territories internationally.
"We are pleased with Nexavar's strong performance in the first quarter of 2008, generating worldwide net sales of $151.9 million, which we attribute to the continued successful launch of Nexavar in liver cancer in both the United States and in the rest of the world," said Tony Coles, M.D., president and chief executive officer of Onyx. "While we continue the global launch of Nexavar in liver cancer, we are focusing commercial efforts on the further development of this new market to support the long-term growth of this important opportunity. At the same time, we are investing in a broad clinical program to realize the potential benefits of Nexavar in numerous other tumor types."
The net profit for the first quarter ended March 31, 2008, included employee stock-based compensation expense of $5.2 million, or $0.09 per diluted share. The net loss for the quarter ended March 31, 2007, included employee stock-based compensation expense of $3.0 million, or $0.06 per diluted share.
Net Revenue from Unconsolidated Joint Business
In the first quarter of 2008, Onyx reported net revenue from unconsolidated joint business of $37.7 million compared to $3.0 million for the first quarter of 2007. The net revenues from unconsolidated joint business were based on total Nexavar sales of $151.9 million in the first quarter of 2008. The increase in net revenue from unconsolidated joint business over prior year is due to the increase in Nexavar revenue recognized by Bayer offset by the increase in combined commercial and research and development expenses for Nexavar. The calculation of this line item is shown in the table following the Condensed Statement of Operations.
Operating Expenses
In the first quarter of 2008, Onyx recorded research and development expenses of $7.4 million, an increase of $1.9 million over the first quarter of 2007. The increase in expenses incurred in the first quarter of 2008 was primarily due to higher costs incurred for the breast cancer program. Research and development expenses included $0.6 million of employee stock-based compensation for the first quarter of 2008 and $0.5 million for the first quarter of 2007.
In the first quarter of 2008, selling, general and administrative expenses were $19.8 million, an increase of $6.7 million over the first quarter of 2007. The increase in selling, general and administrative expenses was primarily due to increases in stock-based compensation, other employee-related expenses and increased marketing expense to support Nexavar. Selling, general and administrative expenses included $4.6 million of employee stock-based compensation in the first quarter of 2008 compared to $2.5 million for the first quarter of 2007.
Cash, Cash Equivalents and Marketable Securities
As of March 31, 2008, the company had cash, cash equivalents, and short and long-term marketable securities of $456.6 million compared to $469.7 million at December 31, 2007. This decrease was primarily due to cash used in operations for the three months ended March 31, 2008.
