Back to top

Analyst Blog

Shares of Puma Biotechnology, Inc. (PBYI - Snapshot Report) soared 18.2% on favorable patent-related news from Europe. The company’s licensed European patent - EP 1848414 - was upheld by the European Patent Office. Boehringer Ingelheim was looking to get the patent revoked.

Background

Puma Biotech had gained certain intellectual property portfolio from Pfizer (PFE - Analyst Report) in 2011 when it had licensed neratinib. This included patents related to methods of treating cancer resistant to Iressa (gefitinib) and/or Tarceva (erlotinib). While some patents were issued in Europe, Australia and several Asian countries, others are pending in countries like the U.S.

The EU patent for which the favorable ruling was made, was issued in Apr 2011, and included specific claims like a pharmaceutical composition for use in treating cancer in patients having a mutation in EGFR with a T790M mutation using an irreversible EGFR inhibitor.

Our Take

Puma Biotech is currently developing neratinib (oral) for the treatment of advanced breast cancer patients, non-small cell lung cancer patients and patients with HER2 mutation-positive solid tumors. Meanwhile, an intravenous version of neratinib is being developed for the treatment of advanced cancer patients.

At present, the company does not intend to develop neratinib for the treatment of cancer that has a T790M resistance mutation. However, the patent is important in the T790M landscape and could help the company garner patent-related royalties in future.

Puma Biotech said that the European patent is scheduled to expire in Feb 2026. The company could file for patent term expansion in which case the patent life could be extended by up to an additional 5 years. We expect investor focus to remain on the ongoing development of neratinib.

Puma Biotech currently carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the biotech sector include Biogen and Alexion Pharmaceuticals (ALXN - Analyst Report). Both are Zacks Rank #1 (Strong Buy) stocks.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%