Puma Biotechnology Soars On Phase III Data; Analyst Smells Takeover Candidate

Puma Biotechnology (NYSE: PBYI) has nearly tripled in value Wednesday on positive trial data for its lead breast cancer drug, while one analyst said the company is a likely takeover target.

After the close Tuesday, the company said a Phase III clinical trial of its neratinib breast cancer drug found it increased disease-free survival by 33 percent. It plans to seek U.S. marketing clearance in the first half of 2015.

"With patent protection until 2030, we see Puma as a likely takeover candidate," Citi Research's Yaron Werber said in a note.

Werber said his discounted cash flow analysis suggests a takeover bid of $291 to $351 per share. He rates the stock a Buy with a target of $292.

UBS' Matthew Roden said results from the trial suggest the drug's potential is "much larger than we had previously modeled."

Roden maintained a Buy rating and raised his target 160 percent to $325, from $125, noting that neratinib has potential for treating additional forms of cancer.

Puma traded recently at $228.25, up nearly 287 percent. Shares closed Tuesday at just below $60.