Onyx Replaces CEO With NPS Chief

Onyx Pharmaceuticals(ONXX Quote - Cramer on ONXX - Stock Picks) said Tuesday that Hollings Renton will officially step down as president, CEO and chairman at the end of next month.

Renton, who announced in October that he planned to retire, will be replaced by N. Anthony Coles the current CEO of NPS Pharmaceuticals(NPSP Quote - Cramer on NPSP - Stock Picks). The move is effective March 31.

The news comes amid a tough time for Onyx, which saw its shares plunge 34% over the past week on news that it halted a late-stage study of its drug Nexavar. The study, which looked at the drug in lung cancer patients, was stopped after an independent monitoring board concluded it had no chance to succeed.

Adding to investor discomfort, the company said in a quarterly earnings call that it would increase spending, and as a result couldn't forecast full-year profitability in 2008.

Analysts, who last week predicted the company would earn 91 cents a share in 2008, are now projecting a profit of 30 cents a share, according to Thomson Financial survey data.

Onyx shares recently were down $1.20, or 4%, to $28.83.

For its part, NPS said it will replace Coles as CEO with Francois Nader, the company's current executive vice president and chief operating office. NPS shares were slipping 8 cents, or 2%, to $3.99.