Puma Biotechnology Inc. stockholders were definitely unhappy after the results of a breast cancer drug trials were made known. It did not live up to expectations.
The neratinib drug, had a better than normal recovery rate of disease-free patients in two years time compared with a placebo-based treatment trial involving 2,821 patient who were tested positive for the protein HER2 and already had acquired previous initial treatment.
But, the disease-free survival rate at 93.9 % using neratinib, was only 2.3 % points higher compared to the placebo trials, and investors were expecting at least 3%. They were highly discontented with the trial results, according to RBC Capital Markets.
Shares of stocks of Puma plumetted by 15 % to $178 at 9:32 a.m. in NYSE, after dropping earlier by as much as 17% in one of the largest intraday decrease in stock trading since June 2.
The stock dropped three times in the past year. It was on Wednesday that investors were willing to bet on the potential of neratinib to rival with Roche’s Herceptin, but it was not to be.
A close scrutiny of the figures showed a better result of neratinib, especially when assessed in patients who were in the same way evaluated for the HER2 protein, Simos Simeonidis said, an RBC analyst, Thursday.
“At first look, efficacy seems to fall below expectations, but we think the data need careful teasing out,” he said, recapping his buy rating on the Los Angeles-based company, Puma.
A $2.9 billion estimated income for Neratinib is anticipated by 2020, according to the average of 3 analysts’ approximations compiled by Bloomberg.