Investors need to give Onyx Pharmaceuticals
It was just a phase 2 trial, after all. The purpose of the midstage trial is to get enough information to see whether a larger phase 3 trial is warranted. Sure, sometimes a drug can hit a jackpot in a phase 2 trial -- Nexavar did in an earlier breast cancer trial -- but most phase 2 trials are small enough that it's hard to see a statistical difference. Heck, some companies -- hey there, Genzyme
According to the company, Nexavar combined with Bristol-Myers Squibb's
Onyx still has two more phase 2 breast cancer trials in the works. One is an add-on therapy with Eli Lilly's
Investors looking for a better price to get into Onyx have just been handed a gift, as far as I can tell.
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Johnson & Johnson is a Motley Fool Income Investor pick. Novartis is a Global Gains selection. The Fool has a disclosure policy.