Onyx Pharmaceuticals (ONXX) - Bull of the Day

We are upgrading Onyx Pharmaceuticals (ONXX) to Outperform based on the company's strong third quarter results and improving prospects. Onyx reported solid third quarter results with revenues increasing 19.3% to $89.5 million, well above the Zacks Consensus Estimate of $81 million. Third quarter 2012 loss of $0.89 per share was narrower than the Zacks Consensus Estimate of a loss of $1.08. Recently launched Kyprolis is off to a solid start and the strong ramp should continue. Loss estimates for both 2012 and 2013 have gone down and the Zacks Rank has moved to #2 (short-term Buy rating) from 3 (short-term Hold rating). With two back-to-back product approvals to its credit, Onyx has successfully transformed itself from a one-product company to a multiple-product company.