Puma Biotechnology Inc (NYSE: PBYI)
Puma Biotechnology is off to a rough start to the day. While the opening bell has yet to ring, we're seeing quite a bit of pre-market activity, pushing the stock downward. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching for with regard to PBYI ahead.
What We're Seeing From PBYI
As mentioned above, it doesn't look like Puma Biotechnology is going to have the best of days in the market today. While the stock was doing relatively well, trading in the green throughout most of after-hours, minutes ago, things went bad. At the moment (8:41), PBYI is trading at $38.50 per share after a loss of $1.30 per share (3.27%) thus far.
Why The Stock Is Falling
As usual, as soon as the CNA Finance team saw that PBYI was falling apart in pre-market, we started to dig to see exactly what was causing the movement. In this particular case, it didn't take long to find the story, and it was, unfortunately, a pretty damning one. Here's what's happening...
Early this morning, Puma Biotechnology released clinical data from a study that was being called Summit. In the data, investors learned that 95.4% of patients taking the treatment experienced diarrhea. Out of those, 39.8% experienced grade 3 or higher diarrhea, and one of those got to grade 4. At this point, investors are concerned because it looks like the treatment is better suited as a treatment for constipation, which obviously has nothing to do with the endpoint here.
What We'll Be Watching Ahead
Moving forward, the CNA Finance team will be keeping a close eye on PBYI. Ultimately, we'll be watching to see where the company goes from here. While they did say, “We are further pleased to see the severe diarrhea become more acute, whereby it does not typically recur after the first month,” this could prove to be a major issue when it comes to achieving approval. Nonetheless, we'll keep a close eye on the story and update you as the news becomes available.
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