Despite failing to meet its primary endpoint of improving the overall survival rate of patients with non-small cell lung cancer, it wasn't all bad news for Onyx Pharmaceuticals.
Despite failing to meet its primary endpoint of improving the overall survival rate of patients with non-small cell lung cancer, it wasn’t all bad news for Onyx Pharmaceuticals.
On news of the late-stage cancer drug trial’s failure, shares of Onyx dropped as low as $42.75 by noon. But by the afternoon, the stock began to recover, hitting $43.27 and not too far off from the where it was ($43.56) at the opening bell on Wednesday.
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Nexavar, co-developed by Onyx and Bayer HealthCare, is already approved in the U.S. and more than 100 other countries to treat patients with unresectable liver cancer and advanced kidney cancer. However, lung cancer is the most common form of cancer globally.
The study comparing Nexavar to a placebo was performed at more than 150 sites on 700 patients. Although the study didn’t improve the overall survival in patients with lung cancer — the main goal of the study — Onyx did report an improvement in the progression-free survival rate, which was the secondary goal.
Also, Bayer HealthCare submitted to the FDA a colorectal cancer drug developed with Onyx. Onyx will be paid royalties on sales if the drug is approved.
The information contained in this article should not be construed as investment advice or as a solicitation to buy or sell any stock.