This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Puma Biotechnology Seen as Takeover Target After Strong Cancer Drug Data

NEW YORK ( TheStreet) -- Shares of Puma Biotechnology (PBYI) are almost tripling after the company reported positive data for its breast cancer drug, while an analyst at Citigroup said that the company would probably become a takeover target.

WHAT'S NEW: Puma last night announced that its breast cancer drug, neratinib, had met its primary endpoint in a Phase III trial. Specifically, patients who received the drug demonstrated a 33% improvement in disease-free survival versus placebo, the company said. The results were statistically significant, Puma added. Puma said it would file for regulatory approval of neratinib in the first half of 2015.

ANALYST REACTION: In a note to investors earlier today, Citigroup analyst Yaron Werber wrote that he expects the company to be acquired in the wake of the data. The data represents a best-case scenario, and there is an 85% chance that the drug will be approved, the analyst stated. Neratinib should generate peak sales of at least $4.1B, according to Werber. He hiked his price target on the shares to $292 from $99 and kept a Buy rating on the stock. Another analyst, Howard Liang of Leerink, similarly called the ExteNET trial outcome a "best case scenario" for the company. Liang said a positive outcome for the trial was not a complete surprise, but that its results are among the better outcomes for adjuvant studies of FDA-approved agents, which should give the drug a good chance of getting FDA approval. The firm sees the full range of strategic options on the table for Puma, including a potential acquisition, Liang wrote. The analyst increased his price target on the stock to $300 from $144 following the trial news and keeps its Outperform rating on the stock. A third research firm, UBS, raised its price target on Puma Biotechnology to $325 from $125 this morning, stating that the neratinib data suggests the opportunity for the drug is much greater than it had previously modeled. UBS, which added that it sees little downside risk to the remaining trials of the drug, keeps its Buy rating on the shares.

PRICE ACTION: In early trading, Puma jumped $159, or 269%, to $218.

Reporting by Larry Ramer and Jason Keil.

The Fly provides comprehensive coverage of stock news and Street research and delivers it in real-time. The Fly breaks market-moving news and explains sudden stock movements in a rapid-fire, short-form story format. Follow @theflynews on Twitter. For a free trial, click here.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.99 -0.02%
FB $99.54 -0.21%
GOOG $678.11 -0.68%
TSLA $148.25 0.18%
YHOO $26.82 -0.85%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs