ONYX Pharmaceuticals (ONXX)

 

Financial instruments that potentially subject Onyx to concentration of credit risk consist principally of cash equivalents and marketable securities. Onyx invests cash that is not required for immediate operating needs principally in money market funds and corporate securities.

 

As of December 31, 2007, the Company’s investment portfolio included approximately $50 million of AAA rated investments in auction rate securities, which are classified as short-term investments. The underlying assets of these securities are student loans substantially backed by the federal government. Subsequent to December 31, 2007, $35 million of these securities in the Company’s investment portfolio have experienced failures in the auction process, and there is no assurance that currently successful auctions on the other auction rate securities in the Company’s investment portfolio will continue to succeed. If the issuers are unable to successfully close future auctions and their credit ratings deteriorate, the Company may, in the future, be required to reclassify these securities to long term assets and the Company will be required to assess the carrying value of these investments. As a result, the Company’s ability to liquidate its investment and fully recover the carrying value of its investment in the near term may be limited or not exist.

 

Onyx’s research and development collaborators are currently concentrated in the United States and Germany.

 

 

Financial instruments that potentially subject Onyx to
concentration of credit risk consist principally of cash
equivalents and marketable securities. Onyx invests cash that is
not required for immediate operating needs principally in money
market funds and corporate securities.

 

As of December 31, 2007, the Company’s investment
portfolio included approximately $50 million of AAA rated
investments in auction rate securities, which are classified as
short-term investments. The underlying assets of these
securities are student loans substantially backed by the federal
government. Subsequent to December 31, 2007,
$35 million of these securities in the Company’s
investment portfolio have experienced failures in the auction
process, and there is no assurance that currently successful
auctions on the other auction rate securities in the
Company’s investment portfolio will continue to succeed. If
the issuers are unable to successfully close future auctions and
their credit ratings deteriorate, the Company may, in the
future, be required to reclassify these securities to long term
assets and the Company will be required to assess the carrying
value of these investments. As a result, the Company’s
ability to liquidate its investment and fully recover the
carrying value of its investment in the near term may be limited
or not exist.

 

Onyx’s research and development collaborators are currently
concentrated in the United States and Germany.

 

 

Financial instruments that potentially subject Onyx to concentration of credit risk consist principally of cash equivalents and marketable securities. Onyx invests cash that is not required for immediate operating needs principally in money market funds and corporate securities.

 

Onyx’s research and development collaborators are currently concentrated in the United States and Germany.