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Puma Biotechnology's (PBYI) Q2 Loss Narrower Than Expected
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Puma Biotechnology, Inc. (PBYI - Free Report) reported second-quarter 2024 adjusted loss of 5 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 10 cents. In the year-ago quarter, the company had reported adjusted earnings of 10 cents.
The above-adjusted loss excludes the impact of stock-based compensation expense. Including the same, the reported loss per share was 9 cents in the second quarter of 2024 against earnings of 5 cents reported in the year-ago quarter.
In the second quarter, total revenues were $47.1 million, which beat the Zacks Consensus Estimate of $44 million.
Revenues, however, decreased around 13.7% year over year. Total revenues comprised net product sales of Nerlynx (neratinib), PBYI’s only marketed drug in the United States, and royalty revenues. Nerlynx is indicated for treating early-stage HER2-positive breast cancer.
Shares of Puma Biotechnology have plunged 19.2% so far this year compared with the industry’s 0.6% decrease.
Image Source: Zacks Investment Research
Quarter in Detail
Product revenues from Nerlynx were $44.4 million in the second quarter, down almost 14% year over year, as sales were negatively impacted by inventory drawdown at specialty pharmacies and specialty distributors. Nerlynx’s product sales were within the guidance range of $43-$45 million.
Product revenues from Nerlynx beat the Zacks Consensus Estimate of $41.3 million, as well as our model estimate of $43.9 million. Nerlynx revenues decreased 24.2% sequentially.
Nerlynx total prescriptions increased around 3% sequentially but decreased 14% year over year in the second quarter. Meanwhile, new prescriptions decreased around 9% on a sequential basis and around 10% year over year.
Overall demand for Nerlynx increased by around 5% sequentially and declined by about 15% year over year during the reported quarter.
Royalty revenues were $2.7 million, down almost 10% from the year-ago quarter. Royalty revenues were in line with our model estimate.
Puma Biotechnology did not record any license revenues in the second quarter.
Total operating costs (including stock-based compensation expense) in the quarter were $49.3 million, down 0.8% year over year.
Selling, general and administrative expenses (including stock-based compensation expense) were up 2.5% year over year to $25 million.
Research and development expenses (including stock-based compensation expense) were $13.6 million in the quarter, up 1.5% year over year.
Cash, cash equivalents and marketable securities were $96.8 million as of Jun 30, 2024, compared with $107.2 million as of Mar 31, 2024.
2024 Guidance
Puma Biotechnology expects Nerlynx’s product sales to be in the range of $183-$190 million in 2024, unchanged from the previous guidance range. In the third quarter of 2024, Nerlynx product sales are expected in the band of $50-$53 million.
Royalty revenues are expected to be in the $30-$33 million range in 2024, also unchanged from the previous guidance range. In the third quarter of 2024, royalty revenues are expected in the band of $20-$22 million.
The company expects license revenues to be in the range of $1-$2 million in 2024.
Net income is expected to be in the range of $12-$15 million in 2024. PBYI expects to report net income in the range of $11-$13 million in the third quarter of 2024.
Pipeline Update
Puma Biotechnology in-licensed the global development and commercialization rights to alisertib, an aurora kinase A inhibitor, from Japan’s Takeda in 2022.
PBYI is conducting ALISCA-Lung1, a phase II study evaluating alisertib as a monotherapy for the treatment of patients with extensive stage small cell lung cancer. Interim data from the study is expected in the fourth quarter of 2024.
Alisertib is also being studied in combination with AstraZeneca’s Tagrisso (osimertinib) in patients with metastatic EGFR-mutant non-small cell lung cancer who have developed Tagrisso resistance.
The company plans to begin the phase II ALISCA-Breast1 study on alisertib in combination with endocrine treatment for treating patients with chemotherapy-naive HER2-negative, hormone receptor-positive metastatic breast cancer in the fourth quarter of 2024.
Puma Biotechnology, Inc. Price, Consensus and EPS Surprise
In the past 60 days, estimates for United Therapeutics’ 2024 earnings per share have improved from $24.48 to $25.59. Earnings per share estimates for 2025 have improved from $26.81 to $28.32. Year to date, shares of UTHR have rallied 49.1%.
UTHR’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 5.81%.
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 48.9%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.
In the past 60 days, estimates for Repare Therapeutics’ 2024 loss per share have narrowed from $2.42 to $2.35. Loss per share estimates for 2025 have narrowed from $3.29 to $3.21. Year to date, shares of RPTX have plunged 53.3%.
RPTX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 123.58%.
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Puma Biotechnology's (PBYI) Q2 Loss Narrower Than Expected
Puma Biotechnology, Inc. (PBYI - Free Report) reported second-quarter 2024 adjusted loss of 5 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 10 cents. In the year-ago quarter, the company had reported adjusted earnings of 10 cents.
The above-adjusted loss excludes the impact of stock-based compensation expense. Including the same, the reported loss per share was 9 cents in the second quarter of 2024 against earnings of 5 cents reported in the year-ago quarter.
In the second quarter, total revenues were $47.1 million, which beat the Zacks Consensus Estimate of $44 million.
Revenues, however, decreased around 13.7% year over year. Total revenues comprised net product sales of Nerlynx (neratinib), PBYI’s only marketed drug in the United States, and royalty revenues. Nerlynx is indicated for treating early-stage HER2-positive breast cancer.
Shares of Puma Biotechnology have plunged 19.2% so far this year compared with the industry’s 0.6% decrease.
Image Source: Zacks Investment Research
Quarter in Detail
Product revenues from Nerlynx were $44.4 million in the second quarter, down almost 14% year over year, as sales were negatively impacted by inventory drawdown at specialty pharmacies and specialty distributors. Nerlynx’s product sales were within the guidance range of $43-$45 million.
Product revenues from Nerlynx beat the Zacks Consensus Estimate of $41.3 million, as well as our model estimate of $43.9 million. Nerlynx revenues decreased 24.2% sequentially.
Nerlynx total prescriptions increased around 3% sequentially but decreased 14% year over year in the second quarter. Meanwhile, new prescriptions decreased around 9% on a sequential basis and around 10% year over year.
Overall demand for Nerlynx increased by around 5% sequentially and declined by about 15% year over year during the reported quarter.
Royalty revenues were $2.7 million, down almost 10% from the year-ago quarter. Royalty revenues were in line with our model estimate.
Puma Biotechnology did not record any license revenues in the second quarter.
Total operating costs (including stock-based compensation expense) in the quarter were $49.3 million, down 0.8% year over year.
Selling, general and administrative expenses (including stock-based compensation expense) were up 2.5% year over year to $25 million.
Research and development expenses (including stock-based compensation expense) were $13.6 million in the quarter, up 1.5% year over year.
Cash, cash equivalents and marketable securities were $96.8 million as of Jun 30, 2024, compared with $107.2 million as of Mar 31, 2024.
2024 Guidance
Puma Biotechnology expects Nerlynx’s product sales to be in the range of $183-$190 million in 2024, unchanged from the previous guidance range. In the third quarter of 2024, Nerlynx product sales are expected in the band of $50-$53 million.
Royalty revenues are expected to be in the $30-$33 million range in 2024, also unchanged from the previous guidance range. In the third quarter of 2024, royalty revenues are expected in the band of $20-$22 million.
The company expects license revenues to be in the range of $1-$2 million in 2024.
Net income is expected to be in the range of $12-$15 million in 2024. PBYI expects to report net income in the range of $11-$13 million in the third quarter of 2024.
Pipeline Update
Puma Biotechnology in-licensed the global development and commercialization rights to alisertib, an aurora kinase A inhibitor, from Japan’s Takeda in 2022.
PBYI is conducting ALISCA-Lung1, a phase II study evaluating alisertib as a monotherapy for the treatment of patients with extensive stage small cell lung cancer. Interim data from the study is expected in the fourth quarter of 2024.
Alisertib is also being studied in combination with AstraZeneca’s Tagrisso (osimertinib) in patients with metastatic EGFR-mutant non-small cell lung cancer who have developed Tagrisso resistance.
The company plans to begin the phase II ALISCA-Breast1 study on alisertib in combination with endocrine treatment for treating patients with chemotherapy-naive HER2-negative, hormone receptor-positive metastatic breast cancer in the fourth quarter of 2024.
Puma Biotechnology, Inc. Price, Consensus and EPS Surprise
Puma Biotechnology, Inc. price-consensus-eps-surprise-chart | Puma Biotechnology, Inc. Quote
Zacks Rank & Other Stocks to Consider
Puma Biotechnology currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the healthcare sector are United Therapeutics Corporation (UTHR - Free Report) , Halozyme Therapeutics, Inc. (HALO - Free Report) and Repare Therapeutics Inc. (RPTX - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for United Therapeutics’ 2024 earnings per share have improved from $24.48 to $25.59. Earnings per share estimates for 2025 have improved from $26.81 to $28.32. Year to date, shares of UTHR have rallied 49.1%.
UTHR’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 5.81%.
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 48.9%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.
In the past 60 days, estimates for Repare Therapeutics’ 2024 loss per share have narrowed from $2.42 to $2.35. Loss per share estimates for 2025 have narrowed from $3.29 to $3.21. Year to date, shares of RPTX have plunged 53.3%.
RPTX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 123.58%.