Poonam A. Arora
Long/short equity, value, research analyst, biotech

Puma Biotechnology: A Short Thesis For Investors

Investment Thesis

Puma Biotechnology (NYSE:PBYI) is an oncology focused biotech company. Its lead asset Neratinib is being developed in several programs, the most advanced being a Phase III in 2nd/3rd line HER2+ metastatic breast cancer. Based on the labels of targeted HER2+ therapies, the drug will compete amongst others with Tykerb. Both compounds are Tyrosine Kinase Inhibitors (TKIs) that block the HER2/EGFR pathways. Both are combined with Xeloda to treat the condition, and show the same serious toxicities, diarrhea and hand and foot syndrome. Given the side effects, physicians have limited use of Tykerb to patients that have few options. Importantly, toxicities associated with Neratinib in the salvage setting might be an issue in earlier disease trials where...

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