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Puma Biotechnology Flops Despite Topping Sales, Loss Expectations

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Puma Biotechnology ( PBYI ) crashed late Thursday despite topping Wall Street's adjusted loss and revenue expectations in its first quarter since launching Nerlynx, a treatment for some patients with breast cancer.

[ibd-display-video id=2550941 width=50 float=left autostart=true]In after-hours trading on the stock market today , Puma toppled 11.2%, near 113, after wrapping the regular session down 4%, at 127.20. Meanwhile, Ligand Pharmaceuticals ( LGND ), which topped views, was flat. AveXis ( AVXS ), which reported wider-than-expected losses, fell 0.3%.

For its third quarter, Puma reported adjusted losses of $1.36 per share, widening from $1.11 a share in the year-earlier period. But that beat the consensus of analysts polled by Zacks Investment Research for adjusted losses of $2.75 per share.

Sales of $6.1 million topped views for $3 million. Nerlynx was approved in July and is Puma's only commercial product. In a survey in October, 60% of Puma investors said they expect Nerlynx to bring in more than $15 million in sales in 2017, RBC analyst Kennen MacKay wrote in a report.

At the time, MacKay viewed $17 million in full-year sales for Nerlynx vs. Bloomberg's consensus, which was at $20 million.

IBD'S TAKE:Puma Biotechnology is ranked 49th out of 456 companies in IBD's Biotech industry group. It has an IBD Composite Rating of 74, meaning it outperforms nearly three-quarters of all stocks in terms of key growth metrics. Visit IBD Stock Checkup for a look at top-rated biotechs.

Leerink analyst Michael Schmidt said in an October note to clients that the fourth quarter would likely be more important for Nerlynx sales. He had forecast $4.3 million in Nerlynx sales for the third quarter and $19.6 million in U.S. sales in 2017.

"Investors are, in our view, still concerned with the overall market opportunity for Nerlynx and whether Puma will be able to successfully execute on the product launch," he wrote in the Oct. 9 note. "Management indicated plans to roll out the full promoted commercial launch in late September."

Puma didn't provide guidance.

Ligand posted adjusted income of 69 cents a share and $33.38 million in sales, up a respective 57% and 54% vs. the year-earlier period. Both metrics topped the consensus which had called for adjusted profit of 60 cents on $31 million in sales.

The firm also updated its 2017 guidance to $134 million to $136 million in sales, vs. its earlier model for sales of at least $134 million plus up to an additional $9 million in contract payments. Ligand also sees adjusted income of $2.95-$3 per share vs. its prior view for $2.93. Analysts saw adjusted profit of $2.96 on $135 million in sales.

AveXis reported losses of $1.52 per share and no sales, compared with the year-earlier period in which it reported losses of 87 cents per share and no sales. Analysts had called for a $1.42 per-share loss and no sales.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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