Back to top

Image: Bigstock

Puma Biotechnology Stock Rises 35% in 6 Months: Here's Why

Read MoreHide Full Article

Shares of Puma Biotechnology (PBYI - Free Report) have rallied 35.3% in the past six months against the industry’s decline of 9.2%.

The company’s sole marketed product, Nerlynx (neratinib), is approved for treating early-stage HER2-positive breast cancer in patients previously treated with Roche’s (RHHBY - Free Report) Herceptin-based adjuvant therapy. Nerlynx is also approved in combination with Xeloda (capecitabine) for treating advanced or metastatic HER2-positive breast cancer who have received two or more prior anti-HER2-based regimens in the metastatic setting.

Nerlynx generated sales worth $195.2 million in 2024. Sales of the drug improved during the second half of 2024 compared to the first half. Overall demand for the drug also rose during the second half of 2024. Nerlynx sales came ahead of management’s expectations during the fourth quarter of 2024.

Management expects Nerlynx product sales to be in the range of $192-$198 million in 2025.

The improved sales of Nerlynx have been the primary reason for the stock’s increase in the past six months.

Zacks Investment Research
Image Source: Zacks Investment Research

Alisertib - A Promising Pipeline Candidate for PBYI

Puma Biotechnology in-licensed the global development and commercialization rights to alisertib, an aurora kinase A inhibitor, from Japan’s Takeda in 2022. It is developing alisertib for hormone receptor-positive breast cancer as well as small-cell lung cancer (SCLC).

The company is conducting ALISCA-Lung1, a phase II study evaluating alisertib as a monotherapy for the treatment of patients with extensive-stage SCLC. Interim data from this study is expected to be announced later in 2025.

Puma Biotechnology initiated the phase II ALISCA-Breast1 study on alisertib in combination with endocrine treatment for treating patients with chemotherapy-naïve HER2-negative, hormone receptor-positive metastatic breast cancer in November 2024. Initial data from the study is expected later in 2025.

If successfully developed, alisertib has the potential to boost the company’s position in the anticancer drug market and lower its heavy dependence on Nerlynx for revenues.

PBYI Solely Dependent on Nerlynx for Revenues

Puma Biotechnology has no approved product in its portfolio other than Nerlynx. As a result, the company remains heavily dependent on Nerlynx for revenues and overall growth.

While the breast cancer market holds immense commercial potential, Nerlynx faces intense competition in the targeted space. Approved treatments include RHHBY's Herceptin and Novartis' Tykerb. Few other companies are also developing treatments for extensive-stage SCLC. All these factors remain a headwind as alisertib, if successfully developed, is likely to face acute competition in the target market.

The improving sales of Nerlynx and the successful development of alisertib should continue the upward momentum for PBYI stock in 2025.

PBYI's Zacks Rank & Stocks to Consider

Puma Biotechnology currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Gilead Sciences, Inc. (GILD - Free Report) and Dynavax Technologies Corporation (DVAX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Gilead’s earnings per share have increased from $7.56 to $7.87 for 2025. During the same time, earnings per share have increased from $7.76 to $8.27 for 2026. In the past year, shares of GILD have rallied 47.1%.

GILD’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.47%.

In the past 60 days, estimates for Dynavax’s earnings per share have increased from 32 cents to 33 cents for 2025. During the same time, earnings per share have increased from 49 cents to 57 cents for 2026. In the past year, shares of DVAX have increased 12.1%.

DVAX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 9.58%.

Published in