Puma Biotechnology Attempts a Rebound After Drug Win

The company announced successful trial results for its breast cancer drug

Shares of Puma Biotechnology Inc (NASDAQ:PBYI) are up 6.9% at $22.90, after the company announced successful results of the Phase III NALA trial for its experimental breast cancer drug, neratinib. Analysts are waxing optimistic on PBYI shares, with Cantor Fitzgerald upping its price target to $55 from $50 -- more than double the current price -- and stating the general expectation among investors was for the drug trial to fail. RBC also called the data an "unexpected positive," boosting its price target to $29 from $26.

Puma has endured a rough year, with the equity down 78% year-to-date. The stock has suffered a few dramatic bear gaps, including one in early November, prompted by weaker-than-expected Nerlynx sales. Since then, PBYI has been range-bound, with upside momentum contained by the $24-$25 region, and support emerging in the $20-$21 area.

In light of the beating PBYI stock has taken this year, analysts have been cautious. Although the drug concern currently sports a lofty $40.78 consensus 12-month price target -- which stands at an 81% premium to current levels -- five analysts maintain a "hold" or worse rating, compared to two giving it a "strong buy."

On the other hand, near-term options traders are more call-heavy than usual. PBYI's Schaeffer's put/call open interest ratio (SOIR) of 0.25 sits in just the 16th percentile of its annual range, suggesting short-term option players have rarely been more call-biased in the past 12 months.