Investors in search of the next hot cancer drug prospect are once again taking notice of Onyx Pharmaceuticals (ONXX Quote - Cramer on ONXX - Stock Picks).
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 Quote - Cramer on BAY - Stock Picks) it plans to start final, phase III studies next year. "I don't think Bayer would let Onyx move this drug quickly into phase III testing unless their confidence was high," says John McCamant, editor of the Medical Technology Stock Letter. At these prices, Onyx is a recommended stock in McCamant's model biotech portfolio.


