Investors Take a Shine to Onyx

Investors in search of the next hot cancer drug prospect are once again taking notice of Onyx Pharmaceuticals (ONXX).

Shares of the tiny Richmond, Calif.-based biotech firm have shot up 32% in the past two days on a new dose of encouraging, though early, clinical data for its novel cancer-fighting compound, which is known as BAY 43-9006. Onyx shares were up 12% to $6.06 Thursday.

Onyx presented positive updated results from a phase I trial of BAY 43-9006 given to patients with several types of advanced solid tumors. Normally, such early data wouldn't elicit much of a response, but the company said last week that along with partner Bayer (BAY) it plans to start final, phase III studies next year. ...