ONXX
Onyx Pharmaceuticals

Summary

conference date: May 4, 2006
for quarter ending: March 31, 2006

Overview: Nexavar launch successful. Revenues collected by Bayer do not yet cover costs, so Onyx does not report as revenue, yet. Nexavar seems to have broad anti-cancer activity.

Basic data:

No revenues, because Nexavar revenues of $23.7 million for advanced kidney cancer were recognized by Bayer. Onyx now reports Nexavar expense or revenue as a line item in their Statement of Operations.

Losses of $20.4 million or .49 per share.

Cash ended at $258.3 million, a $26.4 million decrease.

Current quarter is $4.1 million due to Bayer from Onyx; at profitability, will shift to net income from Bayer to Onyx. Sales, general and admin expenses were $11.6 million.

There is a complex deal with Bayer for Nexavar that should be carefully studied to understand the financial future of Onyx.

Guidance:

2006 expenses will be considerably higher than 2005 due to new trials, sales and marketing.

Projections about future revenues from nexavar are not yet possible.

Conference Highlights:

Began commercial sales first approved therapy (Nexavar) for renal cell cancer, in conjunction with Bayer. Nexavar is covered by most health plans.

Completion of enrollment in melanoma, lung cancer and liver cancer trials for Nexavar.

Swiss and Mexican approval, expect action in Europe later this year.

Expanded access program in progress in Europe; applications for approval in numerous nations.

Metastatic melanoma is in 2 Phase III studies. Endpoints are progression-free survival and overall survival respectively.

Non-small cell lung cancer Phase III international study.

Next 12 months should prove new indications; seems to have a broad action, so will continue to invest in more trials

Q&A:

Abstracts for Nexavar are on the Onyx web site.

R&D appears to be going down? Not really, Onyx 50% share of combined amount is going up from quarter to quarter.

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Copyright 2006 William P. Meyers