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

Puma Biotechnology Inc. (NYSE: PBYI) nearly tripled in value Wednesday on positive trial data for its lead breast cancer drug while an 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 a 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 $217.97 up nearly 270 percent. Shares closed Tuesday at just below $60.Read more: http://www.nasdaq.com/article/puma-biotechnology-inc-pbyi-has-soared-to-a-new-high-on-phase-3-data-20140723-00579#ixzz38IlQEc7F