Puma Biotech Out-Licenses Nerlynx Rights In Europe, Stock Down
Zacks Investment Research | Apr 01, 2019 10:45PM ET
Puma Biotechnology, Inc. (NASDAQ:PBYI) announced that it has signed a license agreement with the French pharmaceutical company Pierre Fabre, giving the latter the exclusive rights to develop/commercialize Nerlynx (neratinib) in Europe and across parts of Africa.
Nerlynx is approved as an extended adjuvant treatment of HER2-positive early stage breast cancer in adult patients, previously treated with Roche’s (OTC:RHHBY) Herceptin-based adjuvant therapy. The drug was approved in Europe last September.
Per the agreement, Puma Biotech is eligible to receive an upfront payment of $60 million and up to $345 million in regulatory milestones plus double-digit royalties on Nerlynx sales. Pierre Fabre will enjoy exclusive marketing rights to Nerlynx in the European countries excluding Russia and Ukraine. Going forward, the French company will also be responsible for conducting additional clinical studies for Nerlynx label expansion in Europe.
However, it seems that the deal did not go down well with some investors and consequently, the stock took a hit. In fact, shares of Puma Biotech were down more than 8% following this news on Monday. However, the stock has soared 75.1% so far this year, outperforming the Original post
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