UPDATE: Bank of America Merrill Lynch Initiates Coverage on Puma Biotechnology with Buy Rating, $29 PT

In a report published Friday, Bank of America Merrill Lynch initiated coverage on Puma Biotechnology

with a Buy rating and $29.00 price target. BofA Merrill Lynch noted, “We are initiating coverage of Puma Biotechnology (PBYI) with a Buy rating and sum of the parts derived $29 PO. Puma is a pharmaceutical company focused on maximizing value for its sole late stage development stage drug, neratinib, a tyrosine kinase inhibitor (TKI), for the treatment of HER2+ metastatic breast cancer (mBC). Based on strong Phase 2 data to date, we expect neratinib to show superior efficacy over comparator Tykerb in Phase 3 testing (data est 2014). Key catalysts in 2013 include a series of Phase 2 studies that could further broaden neratinib's potential market. Our PO is based on neratinib in its first indication in salvage mBC; success in additional indications represents upside.” Puma Biotechnology closed on Thursday at $19.48.