Liver Cancer

Onyx Pharmaceuticals Reports Third Quarter and Nine-Month 2007 Financial Results

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Nexavar net revenue was $104.6 million for the quarter ended September 30, 2007, which represents a 130% increase over the $45.4 million reported in the same period last year and a 29% increase over the $81.3 million reported in the three months ended June 30, 2007. Onyx, with its collaborator, Bayer HealthCare Pharmaceuticals Inc., or Bayer, is marketing and developing Nexavar(R) (sorafenib) tablets, an anticancer therapy currently approved for the treatment of advanced kidney cancer in the U.S., European Union, and other territories internationally. Nexavar was approved last week by the European Union for the treatment of patients with liver cancer. In accordance with Onyx's collaboration agreement with Bayer, Bayer recognizes all revenue from the sale of Nexavar.

"Onyx's revenue growth in the third quarter was driven by the strong performance of the Nexavar franchise in both the U.S. and internationally," said Hollings C. Renton, president and chief executive officer of Onyx. "With a growing oncology business, a recent regulatory approval in the European Union and active filings globally for a second indication, as well as a robust clinical development program, we are well positioned for continued positive momentum."

The net income for the quarter ended September 30, 2007, included employee stock-based compensation expense of $3.6 million, or $0.07 per share. The net loss for the quarter ended September 30, 2006, included employee stock-based compensation expense of $3.5 million, or $0.08 per share.

Net Expense due to (from) Unconsolidated Joint Business

Onyx reports the net expense due to (from) unconsolidated joint business for Nexavar as a single line item within the Statement of Operations. This item consists of Nexavar product revenue and the reimbursement of Onyx and Bayer for each company's shared expenses under the collaboration and is, in effect, the net amount due to or from Bayer to balance the companies' economics under the Nexavar collaboration. According to the terms of the collaboration, the companies share all research and development, marketing, and non-U.S. sales expenses. Onyx and Bayer each bears its own U.S. sales force and medical science liaison expenses. Bayer recognizes all revenue under the Nexavar collaboration and incurs the majority of expenses relating to the development and marketing of Nexavar. The calculation of the net expense due to (from) unconsolidated joint business is shown in the table following the summary financial information. In the third quarter of 2007, Onyx reported a net amount due from Bayer of $17.6 million compared to a net amount due to Bayer of $3.6 million for the third quarter of 2006. This change was primarily due to an increase in Nexavar revenue recognized by Bayer partially offset by an increase in the combined commercial expenses for Nexavar.

Keywords: Anticancer Therapy, Kidney Cancer, Liver Cancer, Liver Carcinoma, Marketing and Licensing Agreements, Nexavar, Oncology, Onyx Pharmaceuticals Inc., Pharmaceutical Business, Pharmaceutical Company, Sorafenib, Therapy, Treatment, Onyx Pharmaceuticals Inc.

This article was prepared by Biotech Business Week editors from staff and other reports. Copyright 2007, Biotech Business Week via NewsRx.com.