Share price movements
On May 10, Puma Biotechnology (PBYI) reported first-quarter results. The company reported revenues of $99.1 million, a YoY rise of 49.02%. According to the first-quarter earnings conference call, Nerlynx reported sales of $45.6 million, a YoY decline of 25.37%.
On April 1, Puma Biotechnology issued a press release announcing an exclusive licensing agreement with Pierra Fabre for the development and commercialization of Nerlynx in Europe and some African markets. In accordance with this agreement, the company received $60 million as an upfront milestone payment from Pierra Fabre. According to the first-quarter earnings conference call, this upfront payment net of the company’s R&D (research and development) expenses in Europe, and milestone payment from another licensing partner together represented $53.5 million in licensing revenues earned by Puma Biotechnology in the first quarter.
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In the first quarter, Puma Biotechnology reported non-GAAP EPS of -$0.26, a YoY improvement of 60.00%. Puma Biotechnology surpassed the consensus revenue estimate by $31.85 million and the consensus EPS estimate by $0.40 in the first quarter.
After the results, Puma Biotechnology closed at $18.42 on May 10, which is 38.64% lower than the previous close. On May 13, Puma Biotechnology dropped further by 8.31% and closed at $16.89, 4.03% lower than the 52-week low of $17.60, and 74.19% lower than the 52-week high of $65.45. The company’s market capitalization is $1.06 billion and the forward PE, PS, PB, and PC ratios were 108.97x, 4.23x, 18.77x, and 6.42x, respectively.
Puma Biotechnology’s 14-day RSI (relative strength index) is currently 12.17. The number of outstanding shares for the company is 62.89 million, while the short float ratio is 14.20%.
Analysts’ recommendations and target price
Wall Street analysts expect an upside potential of 38.44% for Puma Biotechnology based on the company’s closing price on May 10. Analysts raised the company’s 12-month consensus target price from $38.89 in February to $43.88 in March but then reduced it to $42.00 in April and have further slashed it to $25.50 in May.
Out of ten analysts covering Puma Biotechnology, seven analysts recommend a “hold,” and three recommend a “sell.” The consensus recommendation for the company is a “hold.”