Puma Biotechnology Continues To Thrive Despite European Debacle
Puma Biotechnology set to provide market update about its only commercial product.
European regulators sought additional information for approving Nerlynx.
The company stock has shown steady growth in the past.
Puma Biotechnology, Inc. (NASDAQ:PBYI) got approval for neritinib, or Nerlynx, a tyrosine kinase inhibitor that blocks HER1, HER2, HER3 and HER4, and is approved for the extended adjuvant treatment of early-stage, HER2-positive breast cancer in adult patients who have been previously treated with a regimen that includes the drug trastuzumab. This is a $13bn market (2023 estimates), and while Herceptin made $5bn last year in annual sales, other drugs have not been so successful. For Nerlynx even as adjuvant therapy to reach blockbuster status is not a major leap of faith, especially because its diarrhea side effect is quite manageable prophylactically.
PBYI stock gained over 226 percent in the past 12 months and does not show any sign of reversing the trend. Interestingly, this budding pharma company has yet to report the performance of its only commercial product in the market, Nerlynx. As the company prepares to announce its Q3 results on November 9, the numbers will provide a glimpse of Puma’s future as a full fledged firm with a product portfolio. The months ahead will also show how the company manages to tackle its regulatory issues in European Union. Apart from these fundamental issues, the company stock has otherwise shown strong yet steady growth in the market, which boosts investor confidence.
All eyes on Nerlynx market performance
Now that the company is preparing to report its third quarter results, its second quarter performance does not give much idea about what might be expected from the upcoming result announcement. Lets also keep in mind that in the second quarter the company did not have any revenue to report as its flagship product Nerlynx was not commercialized yet. Puma had reported its Non-GAAP net loss for the quarter at $50.9 million, up from $37.9 million it had booked in the corresponding quarter of the previous year. The increase in net loss was mainly attributable to increase in selling, general & administrative expenses. The upcoming quarterly results announcement is important as it would provide an update about the market adoption of the company’s latest product.