Greater Expectations For Puma Technology Boost Credit Suisse Target Price To $111

Credit Suisse Has increased its target price for Puma Biotechnology, Inc PBYI from $54 to $111, maintaining an Outperform Rating. The increased price target is based on the firm's greater sales expectations for the breast cancer treatment drug neratinib.

“We view the FDA's acceptance of neratinib's NDA as a key de-risking event,” said analyst Kennen MacKay, “further supported by management's guidance that FDA's 60-day letter indicated that no review issues have been identified at this time.”

Credit Suisse sees physician sentiment towards neratinib improving and an awareness of Imodium prophylaxis as a means of managing side effects of the drug increasing.

“We view this improving the drug's risk/reward profile and likelihood of usage in lower risk patients,” states MacKay.

Credit Suisse also hosted a physician call at 1:30 p.m. to discuss neratinib’s potential for approval and usage.