Zeev's Turnips Patch-No Politics (ZEEV)

[Bearmove]

Zeev, from Monday...

By Roger Cheng
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Onyx Pharmaceuticals Inc.'s (ONXX) shares fell 5% Monday, continuing their retreat from their 52-week high set May 7, amid concerns that the company's kidney cancer drug will face stiff competition.

About two weeks ago, Lehman Brothers Inc. analyst Jim Birchenough expressed concern that Onyx's renal cancer drug, BAY 43 9006, jointly developed by Bayer AG (BAY), may be overshadowed by Pfizer Inc.'s (PFE) presentation at the upcoming American Society of Clinical Oncology annual meeting in early June in which Pfizer will talk about its renal cancer drug, SU011248

Wall Street's assumptions over the development timeline for Onyx's drug appear aggressive considering the company's valuation, the analyst noted.

Stocks of companies developing cancer drugs have been weak recently, and shares of Onyx, which Birchenough said have aggressive assumptions priced in, have been among the worst hurt, he said.

Birchenough doesn't own a stake in Onyx, but Lehman does have an investment-banking relationship with the company.

Competitive concerns have been weighing on the stock over the past week, according to one significant shareholder, but he doesn't believe Pfizer's compound is superior to Onyx's drug.

A spokesman for Onyx wasn't immediately available for comment.

Shares of Onyx recently traded at $48.45, down $2.55, on volume of 2.1 million. Average daily volume is 789,100 shares. The stock's 52-week high was $60.

-By Roger Cheng, Dow Jones Newswires