The key asset driving
the upside valuation for Onyx
(ONXX-$126.26) is Kyprolis (carfilzomib), a proteasome inhibitor recently
approved for the treatment of patients with relapsed and refractory multiple
myeloma (whose disease has progressed (got worse) on their last therapy or
within 60 days of their last therapy). Analysts opine that this disrupter of
cancer cell growth could generate peak annual sales of up to $2.1 billion by
2020.
Nonetheless, there are
risk considerations that could thwart the assigned value attached to Kyprolis,
including a failure to gain label expansion (earlier usage). Whether Kyprolis
can take share from Celgene (CELG),
whose $4.3 billion immunomodulatory drug Revlimid (lenalidomide) is used in all
stages of multiple myeloma (MM), will depend on clinically significant
improvements in comparative overall survival outcome studies....
Given competitive risks, future regulatory
uncertainties, and a price-to-sales multiple almost twice the industry average
of 11.2 times sales, Onyx management’s price could prove too rich a multiple
even for the hungriest of dug manufacturers.
Read more at YCharts: $10 Billion Onyx Joke MayBe On Amgen Holders
Editor David J Phillips does not hold a
financial interest in any stocks mentioned in this article. The 10Q Detective
has a Full Disclosure Policy.
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