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Thursday, June 13, 2024

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Why Puma Biotechnology Shares Dropped 17.7% This Week

What occurred

Puma Biotechnology (PBYI -2.24%), a biopharmaceutical firm that focuses on oncology therapies, noticed its shares drop as a lot as 17.7% this week, based on knowledge from S&P International Intelligence.

The inventory closed at $3.10, then opened on Monday at that very same worth. The inventory hit a low of $2.55 on Thursday. It has a 52-week low of $1.60 and a 52-week excessive of $7.73. General, its shares are down 13% this 12 months regardless of an increase of greater than 32% prior to now three months.

So what

It was a foul week for shares typically, and as a comparatively small biotech with a market cap of $122.09 million, Puma’s inventory is extra more likely to be risky. The corporate has just one business product, Nerlynx, to deal with breast most cancers. The inventory is coming off a stronger-than-expected second quarter, for which it posted income of $51.Three million, up from $48.9 million in the identical quarter in 2021. The corporate additionally reported earnings per share (EPS) of $0.21, in comparison with an EPS lack of $0.13 within the second quarter of 2021.

Now what

Puma’s complete income stream depends on one drug. The secret is how a lot the healthcare firm can develop the label for Nerlynx (neratinib). A report by International Markets Insights places the breast most cancers therapeutics market to develop to $42.6 billion by 2028. The issue for Puma is that there’s already a whole lot of competitors within the house, so it wants to seek out different makes use of past breast most cancers. Puma additionally has the drug in Part 2 trials to deal with non-small cell lung most cancers and cervical most cancers.

Jim Halley has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.

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