Details on neratinib
Assuming neratinib is evetually is approved, it is likely to be used in many early-stage breast cancer patients whose tumors grow faster because of a gene called HER2. These patients are typically treated with Roche’s Herceptin today.
In Puma’s just-reported clinical trial, neratinib was given to women whose breast cancer tumors had been surgically removed and treated with Herceptin to prevent recurrence. Following the Herceptin treatment, was completed, some trial participants received neratinib and some received a placebo.
UBS raises Puma Biotechnology price target to $325
Analysts Matthew Roden and colleagues say these strong trial results are a game-changer for HER-2 cancer treatments. “In our view, the 33% reduction in risk of relapse or death in the adjuvant setting should establish neratinib as a standard of care in the $4bn+ segment.”
In modeling their $325 price target for Puma Biotechnology, the UBS analysts upped the probability that Puma Biotechnology Inc (NYSE:PBYI)’s neratinib would be approved for commercial use from 30% to 85%, and upped the potential market size to greater than three billion dollars. Roden et al. also calculate that Puma could have an upside of as high as $430, and a downside of $130 if other ongoing clinical trials for related indications fail.
