Nexavar expected to bloom in Europe

Wall Street may be gloomy overall, but analysts are upbeat on Onyx Pharmaceuticals. JP Morgan upgraded the company today on news that European physicians are poised to expand use of the liver cancer drug Nexavar.

Nexavar use against both early stage and advanced liver cancer will grow, according to the results of a JP Morgan survey of 50 European doctors, analyst Cory Kasimov told the Associated Press. Plus, many docs are willing to use Nexavar as an adjuvant therapy after surgery if clinical trials show the drug is effective for that use.

Within a year, Nexavar will be used in 61 percent of advanced liver cancer cases and 34 percent of early stage cases, Kasimov said, up from 49 percent and 18 percent currently. He expects Onyx to post revenue growth of 60 percent per year through 2012.

As you know, Bayer Healthcare markets Nexavar and collects all the revenue, paying Onyx on a milestone basis.

- read the AP story