Onyx Pharmaceuticals (ONXX) reported third quarter earnings of 28 cents per share, well above the Zacks Consensus Estimate of 22 cents as well as 21 cents reported in the year-ago period. The company, along with Bayer AG (BAYRY.PK), developed Nexavar (sorafenib) tablets, an anticancer therapy currently approved and marketed for the treatment of liver cancer and advanced kidney cancer in the US, European Union, Japan and some other countries. Onyx’s earnings come in the form of royalty and collaboration income on Nexavar sales.  For the quarter, Onyx reported revenues of $69.1 million compared to $50.8 million for the same period in 2008 primarily due to an increase in Nexavar sales and royalty revenue and a decline in the drug’s commercial expenses. While revenues increased 36%, a 43.6% rise in operating expenses brought down Onyx’s operating margin by 450 basis points to 14.5%. R&D and SG&A expenses increased ...

For Immediate Release

Chicago, IL - April 17, 2009 - Zacks.com announces the latest Industry Outlook. Today's outlook from Zacks Equity Research analyst Grant Zeng discusses the Biotech sector. Highlighted stocks include: Myriad Genetics (MYGN), Onyx Pharmaceuticals Inc. (ONXX) and AMAG Pharmaceuticals Inc. (AMAG) and 3SBio Inc. (SSRX).

Here is the latest on the Biotech sector:

We continue to have BUY ratings on Myriad Genetics (MYGN), Onyx Pharmaceuticals Inc. (ONXX) and AMAG Pharmaceuticals Inc. (AMAG). All three companies have strong balance sheets, which eliminate immediate financing needs.

MYGN is a biopharmaceutical company that focuses on the development of molecular diagnostic and therapeutic products. The company's molecular diagnostics business has been very strong and continued to grow impressively in the fiscal second quarter of 2009 ended December 31, 2008, and the outlook is bright even in the current economic environment. We

...

Last year, the Biotech industry as a whole achieved much better performance than the market. Both the NASDAQ Biotech Index and AMEX Biotech Index outperformed all three major market indices (Dow Jones Industrial Average, NASDAQ Composite and S&P 500) in a large margin. The major indices declined as much as 40%. While NASDAQ Biotech Index declined only 12.6%, and AMEX Biotech Index was down 17.7%.

However, when the recession enters into its third year, the Biotech industry is not doing better than the market, which has been evident by the indices' performances. As of April 9, 2009, AMEX Biotech Index declined 3%, and the broader NASDAQ Biotech Index was down 6.8% (AMEX Biotech has 20 biotech companies while NASDAQ Biotech Index includes over 130 component companies). Although the Dow and S&P 500 also declined a similar percentage, technology-laden NASDAQ actually has a gain of 4.8%, which is more comparable to the

...

Last year, the Biotech industry as a whole achieved much better performance than the market. Both the NASDAQ Biotech Index and AMEX Biotech Index outperformed all three major market indices (Dow Jones Industrial Average, NASDAQ Composite and S&P 500) in a large margin. The major indices declined as much as 40%. While NASDAQ Biotech Index declined only 12.6%, and AMEX Biotech Index was down 17.7%.

However, when the recession enters into its third year, the Biotech industry is not doing better than the market, which has been evident by the indices' performances. As of April 9, 2009, AMEX Biotech Index declined 3%, and the broader NASDAQ Biotech Index was down 6.8% (AMEX Biotech has 20 biotech companies while NASDAQ Biotech Index includes over 130 component companies). Although the Dow and S&P 500 also declined a similar percentage, technology-laden NASDAQ actually has a gain of 4.8%, which is more comparable to the

...

OVERVIEWThe financial market and the economic landscape in the U.S. have not changed much since the beginning of the year. And we believe the status quo will last for a while at least in 2009.Large biotech companies are doing OK since they have strong balance sheets to weather the current market turmoil and can generate revenue from product sales. Investors in large biotechnology companies worth more than $1 billion have preserved much of their wealth. Smaller biotech companies, particularly those still in development stage, meanwhile, are under severe strain as the global economic slump cuts into sales and their ability to raise fresh cash to fund research.As we expected, the M&A spree has continued in the first three months of this year. Following the acquisition of Wyeth (WYE) by Pfizer (PFE) announced in January, Merck & Co. (MRK) announced the ...

Financials Remain StrongOn February 23, 2009, Onyx Pharmaceuticals, Inc. (ONXX) reported 4Q08 earnings. Worldwide Nexavar sales came in at $176.5 million, up 41% from $125 million in 4Q07. US sales were $52 million in 4Q08, up 21% compared to $43 million in 4Q07, and up 8% sequentially compared to $48 million in 3Q08. International sales reached $124.5 million in 4Q08, up 52% from $82 million in 4Q07.While US sales were in line with our estimate, international sales fell short of our expected $145 million. International sales continued to outgrow the US sales. We believe the trend will continue in the coming quarters.According to management from the conference call, growth was mainly due to the label expansion into liver cancer indication. In spite of heavy competition in the kidney cancer market, Nexavar's market share in the kidney cancer market has stabilized. We believe ...

With no sign of stabilization any time soon for current financial and economic conditions, the biotech industry will be divided at the start of 2009. We believe companies with strong balance sheets and low cash-burn rates will survive. Companies with high cash-burn rates and financing needs in the next 6 to 12 months will suffer, and may not survive the current economic downturn.

Most biotech companies are in early to middle stages of development, and continuing financing is an integral part of their operations. With liquidity drying up, capital raising will be very difficult in the next 6 to 12 months. Recently we have seen increased number of small biotech companies which are forced to enter into a survival mode to reserve cash, forced to suspend operations or file for bankruptcy.

We expect the M&A spree will continue in 2009. While licensing has been the lifeline for biotech industry, we believe big

...

With no sign of stabilization any time soon for current financial and economic conditions, the biotech industry will be divided in the early part of 2009. We believe companies with strong balance sheets and low cash-burn rates will survive. Companies with high cash-burn rates and financing needs in the next 6 to 12 months will suffer, and may not survive the current economic downturn.

Most biotech companies are in early to middle stages of development, and continuing financing is an integral part of their operations. With liquidity drying up, capital raising will be very difficult in the next 6 to 12 months. Recently we have seen increased number of small biotech companies which are forced to enter into a survival mode to reserve cash, forced to suspend operations or file for bankruptcy.

We expect the M&A spree will continue in 2009. While licensing has been the lifeline for biotech industry, we believe big pharma

…