Onyx Pharmaceuticals: Lung Data Coming out Mid-Year

Our New York presenter continues to recommend Onyx (NASDAQ: ONXX, $29.14). The company has said that the data from a Phase III trial in lung cancer for its main product Nexavar would come out mid-year. Nexavar has been approved for breast cancer and is being tested in other indications. If the lung data is positive, the stock will go up dramatically, but the downside should the results dissapoint is limited to 5-10%, in the presenter's opinion. He would add to his postion aggressively if the date is negative. The Street is underestimating Nexavar's potential in breast cancer and is not giving enough credit to the drug's prospects in other types of cancer.