Shares of Puma Biotechnology Inc. PBYI, +4.18% plummeted 38% toward a 2 1/2-year low, to pace all premarket decliners, after the company reported third-quarter earnings and revenue that beat expectations, but reported disappointing results of its key product, the breast cancer treatment Nerlynx. That prompted J.P. Morgan to swing to bearish from bullish and slash its stock price target. Total revenue rose to $62.6 million from $6.1 million a year ago, topping the FactSet consensus of $57.9 million, but Nerlynx sales of $52.6 million was below expectations of $58.1 million. The company said late Thursday on the post-earnings conference call with analysts that the percentage of patients who discontinued the use of Nerlynx because of adverse events increased to about 18%. J.P. Morgan’s Cory Kasimov downgraded Puma to underweight from overweight and cut his price target to $23 from $83. “There simply doesn’t appear to be enough new patient starts to offset the discontinuations and patients rolling off [Nerlynx] therapy after 12 months,” Kasimov wrote in a note to clients. the stock had already tumbled 61% year to date through Thursday, while the iShares Nasdaq Biotechnology ETF IBB, +3.84% has gained 1.2% and the S&P 500 SPX, +1.06% had tacked on 2.5%.
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