Onyx Pharmaceuticals

Here is another biotech that I do not like. With a market cap. of $1.4 Billion and only 125 employees (according to Yahoo!) Onyx's share price could be inflated.

Onyx is really a one drug company (it does have another drug in phase 1 trials.) Its one drug is Nexavar, currently indicated for advanced kidney cancer, which it markets with Bayer. Nexavar is also in phase III trials for liver cancer, lung cancer and melanoma.

Onyx reports that in Q1 2007 Naxavar sales more than doubled from $24 million to $61 million. However it does not make clear how much of this revenue it received and how much Bayer kept. Maybe it is just me but before I invest in a company like Onyx I would like to understand that exact nature of their partnership with Bayer.

If all the phase III trials come good that Onyx will soar. However if safety issues are uncovered then the stock will plummet.

For me the risks are too great; not for me.