Stifel Says Puma Biotechnology (PBYI) Abstract Somewhat Concerning, But Sell-Off Appears to be an Over Reaction
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Stifel analyst Thomas Shrader weighed in on Puma Biotechnology (NYSE: PBYI) after the company's San Antonio abstract is out and the diarrhea rate for the complete CONTROL trial looks about twice what was indicated in the early look (27% (n=133) vs. 16% (n=50)).
Shrader commented, "This is somewhat disturbing as this abstract was likely submitted some time ago and the company just presented the older data last week. This abstract data was likely embargoed, but it still seems strange to our ears. In addition, attempts to make the loperamide prophylaxis more manageable seem not to have worked as well as the original, more cumbersome, regimen. The actual Grade 3 diarrhea rate seems manageable as this is breast cancer and the treatment benefit in HR+ patients is compelling, we believe (Exhibit 1). In addition, our KOL calls have indicated that hospitalizations due to diarrhea are the biggest issue for approval and Grade 4 diarrhea events were zero in all arms of the trial. In addition, an experimental arm (n=16) adding a non-absorbed steroid budesonide showed a very manageable Grade 3 diarrhea rate of 12.5% – with 24 more patients to go. Based on mid-day trading, this looks like an over reaction in the stock to us."
The firm maintained a Buy rating and price target of $88.00
Shares of Puma Biotechnology closed at $50.40 yesterday.
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