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Reasons to Add Puma Biotechnology (PBYI) to Portfolio Now

Zacks

On May 16, 2017, we issued an updated report on Puma Biotechnology, Inc. PBYI.

Puma Biotechnology is a development-stage biopharmaceutical company focused on the development and commercialization of innovative treatments that enhance cancer care.

The company posted narrower-than-expected loss in the first quarter of 2017. Reported loss of $1.97 per share was also narrower than year-ago figure of $2.19. With no approved products in its portfolio at the moment, the company does not generate revenues yet. The company reported first-quarter results on May 10, 2017.

So far this year, Puma’s shares have outperformed Zacks classified Medical-Biomed/Genetics industry. The company’s shares have gained 4.1% while the industry registered an increase of 2.2%.



Puma has made significant progress with its lead candidate, neratinib. The candidate is currently under review in both the U.S. and the EU for HER2+ breast cancer. An approval would be a huge boost for the company given the immense commercial potential in the target market.

We note that several additional studies on neratinib targeting different types of breast cancer patient populations are currently underway. During the quarter, Puma presented encouraging data from several ongoing studies on neratinib at the annual meeting of the American Association for Cancer Research (AACR).

Puma also expects to achieve several milestones in the second quarter of 2017. These include additional data from the phase III study on neratinib in third-line HER2-positive metastatic breast cancer patients and data from a phase II study on neratinib in HER2-positive metastatic breast cancer patients with brain metastases.

However, dependence on the successful development of a single candidate may hurt the company’s growth prospects in case of any adverse development or regulatory setback.

Moreover, lack of partnership deals could hamper progress of the candidate as the company has no sales, marketing or distribution capabilities.

Puma Biotechnology Inc Price and Consensus


Puma Biotechnology Inc Price and Consensus | Puma Biotechnology Inc Quote

Zacks Rank & Key Picks

Puma currently carries a Zacks Rank #2 (Buy). Other stocks in the health care sector that warrant a look include Aeglea BioTherapeutics AGLE, VIVUS, Inc. VVUS and MEI Pharma, Inc. MEIP. While Aeglea carries a Zacks Rank #2, VIVUS and MEI Pharma sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aeglea’s loss per share estimates narrowed from $3.64 to $2.48 for 2017, over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 20.75%.

VIVUS’s loss per share estimates narrowed from 50 cents to 39 cents for 2017, over the last 30 days. The company posted positive earnings surprises in all of the four trailing quarters with an average beat of 233.69%.

MEI Pharma’s posted positive earnings surprises in three of the four trailing quarters with an average beat of 66.56%. The company’s shares gained 16% so far this year.

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