Goldman Sachs Resumes Coverage On Onyx Pharmaceuticals

Goldman Sachs is resuming coverage on shares of Onyx Pharmaceuticals, Inc. ONXX with a Neutral rating and a $40 price target. In a note to clients, Goldman Sachs writes, "We are resuming coverage of ONXX with a Neutral rating and a $40, 12-month price target. The company is on the verge of filing for FDA approval of its key pipeline drug, Carfilzomib (CFZ) for blood cancer; we have a measured view of CFZ obtaining accelerated approval in 1Q2012 but are positive on eventual approval of the drug in 2H2013/1H2014. ONXX is also investing resources to support long-term growth of its Nexavar liver/kidney cancer franchise ($994mn 2011E sales, 6% yoy growth). While we expect positive Nexavar data from two ongoing trials to increase peak sales potential, there are a number of competitor drugs in late stage trials for liver cancer with data expected in 2H2011-2012." Shares of ONXX lost 22 cents on Friday to close at $36.58, a loss of 0.6%.