Onyx Pharma Swings to Outsized Profit

Onyx Pharmaceuticals ONXX posted a first-quarter profit and beat Wall Street expectations Tuesday, boosted by sales of its anti-cancer drug Nexavar.

The Emeryville, Calif.-based company after the market close reported earnings of $15.4 million, or 27 cents a share, vs. a loss of $12.2 million, or 26 cents a share, a year earlier.

Bayer BAYRY.PK, Onyx's partner for kidney and liver cancer treatment Nexavar, reported sales of $151.9 million from the drug, compared to $60.9 million a year earlier. Based on that, Onyx reported net revenue from unconsolidated joint business of $37.7 million, compared to $3 million a year earlier.

The results beat by far what analysts, according to the Thomson Financial consensus target, were expecting: a loss of 6 cents a share on revenue of $11.7 million.

On the expense side, R&D spending increased roughly 35% to $7.4 million, due to higher costs in the company's breast cancer program. Selling, general and administrative expenses increased 51% to $19.8 million, primarily due to an increase in stock-based compensation, other employee-related expenses and marketing expenses.

Shares were up 56 cents, or 1.5%, at $38.50 in recent post-market trading Tuesday.