Onyx Pharmaceuticals Reports First Quarter 2004 Financial Results

Onyx Pharmaceuticals Reports First Quarter 2004 Financial Results



RICHMOND, Calif., May 5  /PRNewswire-FirstCall/ -- Onyx Pharmaceuticals, Inc. 
reported a net loss of $8.2 million, or $0.25 per share, for the quarter ended
March 31, 2004, compared with a net loss of $10.7 million, or $0.47 per share,
for the same quarter in 2003.  These results reflect higher clinical
development and marketing expenditures for Onyx's lead product candidate, BAY
43-9006, offset by reduced expenses as a result of the 2003 termination of its
therapeutic virus program.  BAY 43-9006 is an orally active small molecule
anticancer compound in codevelopment with Bayer Pharmaceuticals Corporation.

As of March 31, 2004, the company had cash, cash equivalents and marketable
securities of $248.3 million compared to $105.4 million at December 31, 2003. 
In February 2004, the company raised net cash proceeds of $148.4 million in a
public offering of its common stock.  Onyx sold 4,685,693 shares at $33.75 per
share pursuant to an effective registration statement previously filed with the
Securities and Exchange Commission.

For the quarters ended March 31, 2004 and 2003, Onyx reported no revenue.
Research and development costs decreased by $2.3 million in the first quarter
of 2004 versus the comparable period last year.  This was the result of a
decrease of $4.0 million of expenses associated with the therapeutic virus
program, partially offset by increased expenses of $1.7 million related to the
development of BAY 43-9006.  Expenses associated with BAY 43-9006 may fluctuate
from quarter to quarter due to variability of costs associated with clinical
trials and third-party vendors.

Onyx Pharmaceuticals is engaged in the development of novel cancer therapies
that target the molecular basis of cancer.  With its collaborators, the company
is developing small molecule drugs, including BAY 43-9006 with Bayer
Pharmaceuticals Corporation.  For more information about Onyx's pipeline and
activities, visit the company's website at http://www.onyx-pharm.com/.

This press release contains forward-looking statements regarding expectations
about the development of BAY 43-9006.  These forward-looking statements involve
a number of risks and uncertainties that could cause actual events to differ
from the company's expectations.  These risks are addressed in the company's
periodic reports filed with the Securities and Exchange Commission, including
but not limited to its Annual Report on Form 10-K filed on March 15, 2004 and
its Quarterly Reports on Form 10-Q.

                        ONYX PHARMACEUTICALS, INC.
                      SUMMARY FINANCIAL INFORMATION

                         STATEMENTS OF OPERATIONS
                 (in thousands, except per share amounts)

                                                        Three Months Ended
                                                            March 31,
                                                        2004        2003
                                                     (unaudited) (unaudited)

  Total revenue                                           $--        $--
  Operating expenses:
    Research and development                            6,730      9,037
    Marketing                                             289         80
    General and administrative                          1,686      1,302
    Restructuring                                          --        442
      Total operating expenses                          8,705     10,861
  Loss from operations                                 (8,705)   (10,861)
  Interest income, net                                   524         173
  Net loss                                           $(8,181)   $(10,688)

  Basic and diluted net loss per share                $(0.25)     $(0.47)
  Shares used in computing basic and diluted net
   loss per share                                     32,555      22,697


                         CONDENSED BALANCE SHEET
                              (in thousands)

                                                         March 31,  Dec. 31,
                                                            2004      2003
                                                         (unaudited)   (1)

  Assets
    Cash, cash equivalents and marketable securities      $248,265  $105,400
    Other current assets                                     2,786     3,045
      Total current assets                                 251,051   108,445
    Property and equipment, net                                286       285
    Other assets                                               416       408
       Total assets                                       $251,753  $109,138

  Liabilities and stockholders' equity
    Current liabilities                                    $15,252   $15,619
    Advance from partner                                    20,000    20,000
    Stockholders' equity                                   216,501    73,519
      Total liabilities and stockholders' equity          $251,753  $109,138

  (1) Derived from the audited financial statements included in the
      Company's Annual Report on Form 10-K for the year ended December 31,
      2003.


DATASOURCE: Onyx Pharmaceuticals, Inc.



CONTACT:  Julie Wood of Onyx Pharmaceuticals, Inc., [phone]



Web site:  http://www.onyx-pharm.com/ 

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