Onyx Pharma (ONXX) Should be trading higher with Nexavar

Onyx Pharmaceuticals, Inc. (Public, NASDAQ:ONXX) is trading just 5 points away from it's 52 week low. The stock is a steal at current levels - here's why:

Nexavar

Morgan Joseph analyst Shiv Kapoor had this to say in a recent note to clients: "Onyx is one of the few companies in the biotechnology sector benefiting from a product in the early stages of its growth, a stronghold in an underpenetrated cancer market, a long patent life, and strong economics via its relationship with Bayer"

He expects Nexavar sales to top $1 billion next year and $2 billion in 2015.

Fellow Stockmasters, right now Nexavar is only approved for the treatment of Kidney & Liver Cancer. According to their website, they are also in phase 3 for Non-Small Cell Lung Cancer, and Phase 2 for Breast Cancer and Ovarian Cancer. That's a lot of pipeline for just one drug. If they get FDA approval for just one of these types of cancers, you can expect ONXX's share price to go through the roof.

In Development, the company also has ONX 0801, which is in pre-clinical trials. Here is more information on that:

ONX 0801 is designed to work by combining two proven approaches to improving outcomes for cancer patients. These include receptor-mediated targeting of tumor cells and inhibition of thymidylate synthase, a key enzyme involved in cell growth and division.  ONX 0801 targets malignant cells that overexpress the alpha-folate receptor, which is located on the cell's surface. Once ONX 0801 enters the cell via this receptor, the compound inhibits, or switches off, thymidylate synthase (TS).  ONX 0801 is distinct from currently marketed TS inhibitors, such as pemetrexed, 5 fluorouracil, and raltitrexed, due to its selective tumor cell-specific uptake by the alpha-folate receptor. The alpha-folate receptor is overexpressed in a number of tumor types with significant unmet needs, including ovarian cancer, lung cancer, breast cancer, and colorectal cancer.