Peter Geschek
Long only

Is Puma Biotech's High Stock Price Justified?

One of the best performing stocks in 2013 was Puma Biotechnology (NYSE:PBYI). Puma's shares skyrocketed during the year, climbing over 400 percent from the January 2013 level of $19 to touch a high of $112.46.

Puma's investors are hoping that its drug, neratinib (formerly PB272) succeeds in the coming late stage trials but they are exposed to significant risk if it fails in any of the ongoing or upcoming trials.

If the drug does succeed, it will be lucrative for the company and investors. The potential success could also make Puma an attractive takeover target.

The company's market cap is currently around $3 billion. Puma has no approved product or income and its pipeline consists of a single...

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