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.