Onyx Pharmaceuticals: Focus Is a Double-edged Sword

Onyx Pharmaceuticals announced last June that it would focus solely on its lead product candidate, BAY 43-9006, in Phase III and partnered with Bayer. Its stock has since soared. The company is responsible for some development, and so maintains an active clinical capability. It also negotiated a US co-promotion right. Both may make it an attractive in-licensor, but more than infrastructure, its greatest validation and attraction will come from showing that management made the right choice in prioritizing. It's an all-or-nothing bet, to be sure.