PBYI - Puma Biotechnology's Next Update Is an Important One
Investors have all but given up on Puma Biotechnology (NASDAQ: PBYI), which is really saying something. Two short years ago, the company's lone drug product, Nerlynx, was expected to generate peak annual sales of at least $1.25 billion. Wall Street analysts had price targets as high as $125 per share -- and the stock actually exceeded that level.
But the market got a little ahead of itself. After earning a surprisingly broad approval from the U.S. Food and Drug Administration (FDA) relative to its checkered tolerability and efficacy profile, Nerlynx got off to a slow start as a drug for boosting survival rates in women who had breast cancer. Investors eventually learned that patients have struggled to remain on treatment for the approved 12-month regimen, which explains its difficulty growing revenue and why its shares sit lower than $8 now.
That also makes the next quarterly update in early November very important for investors.