- Pfizer (NYSE:PFE +0.5%) amends its license agreement with Puma Biotechnology (PBYI +0.1%) for Puma's investigational cancer drug PB272. The latter is developing the product for the treatment of HER2-positive breast cancer and other cancers with the mutation.
- Under the terms of the amendment, Pfizer will not fund the legacy clinical trials and the royalty Puma is obligated to pay Pfizer is fixed at low- to mid-teens. Originally, Pfizer was responsible for funding the trials above a pre-determined limit and the royalty range was 10 - 20%.
- Puma's R&D expense will rise by $30M in 2014.
- Puma CEO & President Alan Auerbach puts a positive spin on what is clearly a negative development by stating, "We are pleased to enter into this amendment to the licensing agreement for neratinib. By Assuming responsibility for the expenses associated with the ongoing legacy clinical trials, and by fixing the royalty rate for the drug at a reduced rate, we believe that we have significantly improved the potential value of the drug."