Goldman Sachs Lifts Price Target on Onyx Pharmaceuticals (ONXX) On Bayer Rego Settlement

Goldman Sachs reiterated its Buy rating and lifted its price target Onyx Pharmaceuticals (NASDAQ: ONXX) from $40 to $44 following the settlement with Bayer over next-generation cancer drug Regorafenib (Rego).

Under the deal, Onyx will get a 20% royalty on Rego and importantly will have no obligation to pay past or future development and commercialization costs.

The firm estiamtes that a 20% royalty on Rego is worth approximately $3 per share to Onyx, and they they are now including probability-adjusted royalty estimates for Rego in their 2014-2015 estimates ($4M in 2014 and $12M in 2015).

For more ratings news on Onyx Pharmaceuticals click here and for the rating history of Onyx Pharmaceuticals click here.

Shares of Onyx Pharmaceuticals closed at $34.49 yesterday.

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