Onyx Pharmaceuticals Inc (ONXX)

[surf1944]

Drug stocks slip; Onyx slides on offerings

Aug 5, 2009, 10:59 a.m. EST

BOSTON (MarketWatch) -- Drug stocks slipped in early action Wednesday as shares of Onyx Pharmaceuticals slid on news that it plans to hold two public offerings.

Onyx said late Tuesday that it plans to offer 4 million common shares and $200 million in convertible senior notes due in 2016. The offerings are subject to market conditions.

Also late Tuesday, Onyx reported higher second-quarter earnings of 16 cents a share, compared with 8 cents in the 2008 period.

Revenue rose to $60 million, up from $45 million, due primarily to increased sales of its oncology drug Nexavar, which is co-marketed with Bayer AG.

Early Wednesday, analysts at Caris reportedly cut their rating on Onyx to above average from buy.

Shares of Inovio Biomedical /quotes/comstock/14*!ino/quotes/nls/ino (INO 2.66, +0.51, +23.73%) shot up 20% to $2.58.

Late Tuesday, Inovio reported positive results from a study for its experimental DNA-based vaccine in the treatment of prostate cancer.