Onyx Pharmaceuticals cancer drug, Carfilzomib, shrank the tumors of one-third of study patients with a deadly blood cancer, the company announced yesterday.
The company’s share price surged 13% from $3.91 to $33.38 on the news, Bloomberg reported.
And that means payday.
David E. Shaw is going to be smiling a little since his hedge fund has a decent stake in the company.
D.E. Shaw holds ~3.5 million shares in Onyx, which now has a market value of ~$117 million.
Obviously that’s pennies to Shaw; the firm has $20 billion AUM. But it could mean a decent payday if the drug is approved, and those results suggest it will be.
Onxy is using the results to accelerate approval of the drug by the middle of 2011, which treats multiple myeloma, the second-most-common blood cancer.
The company could see a worldwide revenue from carfilzomib of $391 million in 2015, said one analyst, though there is a chance it could enter the market by 2012 according to Bloomberg.
Onyx’s only current product is Nexavar, a liver-cancer drug, which earned the company ~$850 million last year.
Other major institutional stakeholders are BlackRock, Palo Alto and Sectoral Asset Management.
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